The virus crisis has financially impacted many of our friends, neighbors, and family.
For some, it has been positive as working remotely has meant more time at home, as well as money saved in travel and other business related expenses.
For others, the impact has been negative as hours have been cut or jobs lost, particularly in the hotel, restaurant, retail, and entertainment areas. (As we know all too well living on Cape Cod.)
Nonetheless, the real estate market here had a record setting 2020. As we start the year, we’re still seeing strong buyer demand, but inventory is at an all time low as potential sellers remain reluctant to market their homes.
If you’ve been thinking about making a move, but concerns about employment and the economy are holding you back, here’s what you should know…
Earlier this month, the Bureau of Labor Statistics (BLS) released their most recent Jobs Report that revealed the economy lost 140,000 jobs in December. That’s a devastating number and dramatically impacts those households that lost a source of income.
However, we need to give it some context. As Greg Ip, Chief Economics Commentator at the Wall Street Journal (WSJ), explains:
“The economy is probably not slipping back into recession. The drop was induced by new restrictions on activity as the pandemic raged out of control.”
More importantly, according to Michael Feroli, Chief Economist at JP Morgan/Chase:
“The good news … is that outside the hopefully temporary hit to the food service industry, the rest of the labor market appears to be holding on despite the latest public health challenges.”
Some are concerned that with millions of Americans unemployed, we may see distressed properties (foreclosures and short sales) dominate the housing market once again. Rick Sharga, Executive Vice President at RealtyTrac, along with most other experts, doesn’t believe that will be the case:
“There are reasons to be cautiously optimistic despite massive unemployment levels and uncertainty about government policies under the new Administration. But while anything is possible, it’s highly unlikely that we’ll see another foreclosure tsunami or housing market crash.”
As someone thinking about selling, what can you expect over the next few weeks and months?
For the households that lost a wage earner, there’s no denying that these are extremely difficult times. Hopefully, a new stimulus package will help the situation. With the health crisis improving as more vaccinations become available, the expectation is that the job market will also progress significantly.
If you’re contemplating selling, it’s important to remember that while the economy has been unkind to some, most have kept their jobs and income. We have now worked with several clients who — frustrated at not being able to find property on Cape — have bought in communities like Rochester, Randolph and Fairhaven.
Although not the Cape, these and other similar communities offer many of the same attributes including less congestion, more open space and access to recreation, while being close enough to Boston and Providence for those who may still may need to go to the office every now and then.
So the question for Cape home owners is this: is it time for you to realize a solid return on your real estate investment while interest in your home is strong?
Helping our clients make the best decisions for their individual situations has been our full time job for 21 years, not a part time hobby. If you would like to review your options, let’s connect at 508-568-8191 or firstname.lastname@example.org. Talk soon…
Don’t wish for it; go for it!
Mari and Hank