“There’s nothing to suggest just because we are hit with this pause button that automatically things will come apart.” – Dr. Yun
In the current climate, there is a lot of misinformation and uncertainty in the marketplace. In this episode, Brian interviews NAR Chief Economist Dr. Lawrence Yun to get an update on the ongoing effects of the Coronavirus on the economy and housing. Topics discussed include why home prices are remaining steady, how agents are navigating the process and completing transactions, why real estate provides a hedge against inflation and why the house is still a valuable asset in high demand.
YOU WILL LEARN:
- What the latest statistics and data reveal about home sales and consumer behaviors.
- If there will be a Spring homebuying season.
- Where the home market will finish the year.
MENTIONED IN THIS EPISODE:
“The Complete Story of Civilization,” by Will Durant
“How the Irish Saved Civilization,” by Thomas Cahill
INSPIRATIONAL QUOTES FROM THIS EPISODE:
“I think the first couple of weeks, there was a degree of shock factor.” – Dr. Yun
“What I am seeing in recent weeks, the past couple of weeks, is that buyers are slowly coming back to the market. They’re a little disappointed on the lack of inventory, but 70 percent of the workforce with secure employment they’re looking at historically low mortgage rates and they’re just looking for the right home that meets their needs.” – Dr. Yun
“I think people would be surprised to see how much activity is actually going on in the market in real world terms.” – Brian Buffini
“Trying to purchase a home and get the deal done is far safer than visiting grocery stores.” – Dr. Yun
“When we survey potential buyers and potential sellers, they are indicating that they are not out of the market, but simply delaying the entry point. They just want an all-clear signal from the Governor before reentering the market.” – Dr. Yun
“There’s no panic among home sellers.” – Dr. Yun
“Buyers are acting normal; sellers are acting normal.” – Dr. Yun
“There is still a great desire for people to buy, for people to sell and for people to own a home.” – Brian Buffini
“I anticipate, for the year as a whole in 2020, the sales activity will be down about 10 percent to 15 percent.” – Dr. Yun
“I think that home prices will not decline because of the inventory shortage that we have. There is no expectation by the buyers for any big discount.” – Dr. Yun
“Going into 2021, we have all this pent-up demand. I think the sales will increase about 15 percent and the price is rising 3 to 5 percent.” – Dr. Yun
“We have the political landscape, we have the media landscape and then we have some data.” – Brian Buffini
“If we end up 2020 and we’ve lost 10 to 15 percent that would be remarkable and it would be fantastic and very acceptable for a bump in a year.” – Brian Buffini
“For the current nationwide housing situation, we had a housing shortage before the pandemic and we have even acute shortage today because of not enough listings.” – Dr. Yun
“This is an adversity. You go through the adversity but come out at the end, the other side, to say ‘I have more knowledge, I have more relationships built up’ and that would be a very good starting point for the upturn that I anticipate will be happening later in the year.” – Dr. Yun
“Positive attitude brings positive action.” – Dr. Yun