In an exclusive Washingtonian discussion with Marisa Kashino; Heather Devoto from First Home Mortgage, Erich Cabe from Compass, Dave Hawkins from McEnearney Associates, Daniel Heider from TTR Sotheby’s International Realty, and Elizabeth Lucchesi from Long & Foster Real Estate discussed the DMV real estate market’s reaction to the coronavirus pandemic. Thank you to our event sponsors, First Home Mortgage and Paragon Title.
The event’s discussion focused on what you should expect if you are a buyer or seller in today’s market as well as the general certainty people have with jumping into the real estate game. The conversation started with a talk on what a typical springtime market looks like in the Washington area and compared it to what we’re seeing today. “We have an absorption rate between 1.4-1.6 and anything under 5 is a strong seller’s market”, says Cabe, “if you’re a buyer then you have to be aggressive”.
The panel continued to discuss a variety of topics like the ‘Amazon Effect’, areas of the market that are either slowing down or becoming competitive, and what type of preference changes buyers have moving toward in a post-coronavirus world. Heider mentions this is a unique moment in real estate history because the money is still out there, compared to the economic crisis we faced in 2008. “Being stuck in quarantine, folks are starting to realize they either love their home or they gotta get out”, says Heider. “People are now working and cooking from home, so there’s an increased demand for a home office or the chef’s kitchen of your dreams”.
When it comes to being an agent and talking to buyers expressing concern over buying a home in the age of coronavirus, Lucchesi mentions agents must present a strong level of certainty. “As agents, we offer shelter and we offer certainty. Nobody has certainty right now and they [buyers] are craving it”. She goes on to explain how agents need to piece together information for their buyer, and be a voice of value to let them know this is different from 2008.
Devoto provided a window into the lending side of the real estate world. “There’s a lot of craziness going on. Half of people I’m seeing are having trouble paying their mortgages and the other half are quickly trying to refinance their home”. She goes on to mention that rates are unbelievably low right now, and projected to get lower. However when it comes to the DMV housing market, people are always buying.
Missed the event? Check out some highlights here!