Overnight Buyers Market

Buying & Selling Real Estate

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Overnight Buyers Market

Hai Loc

Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes

Who is suffering in a market from Covid-19 so far?

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Still a very strong sellers market here. All 6 offers I wrote in the last week were multiple offers. Sold a listing yesterday and it was well over list.

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Mike WilkinsonBusiness Member
Real Estate Broker · Denver, CO · Member since 2017 · 51 posts · 29 votes
6y
No doubt that there are less showings happening right now in Denver, and therefore less buyer competition compared to just a week ago. This past weekend I had almost 30 showings in 2 days time, but I wouldn't expect that this weekend. I don't think that we will see much change in price anytime soon with 6 weeks of inventory, but this surely opens the door for my buyers that were being outbid with offers 40K over asking just a couple weeks ago.
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Karen MargraveBusiness Member
Moderator
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
6y
In many areas of the country they are banning agents from showing occupied properties. We are closing what we can as fast as we can. Title companies, banks, etc. are doing everything basically by appointment, and with limited staff exposed to those coming in. It's strange. We are seeing people nervous about agents coming into homes where kids are, due to school closings, etc. We are doing video tours, slideshows of properties, podcasts, etc. trying to get creative. But the truth is, it's all going to come to a screeching halt, and let's pray in a few weeks time hopefully we will be on the other side of this.
What are some of the things you're doing to adapt?
3 Reply
Kevin Zolea
Rental Property Investor · Collingswood, NJ · Member since 2016 · 282 posts · 116 votes
6y
I'm under contract on my first duplex and lost a lot of money that I was going to use for reserves, from the stock market tanking (lesson learned). What are your guys thoughts on trying to renegotiate? The seller has already come down a lot from my initial offer due to unforeseen problems during the inspection.
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Account Closed
East Coast · Member since 2016 · 51 posts · 44 votes
6y
@Lien Vuong
Thanks for the update. I was going to list my primary two Mondays ago and backed out. Your post affirmed we did the right thing.
Best, Kevin
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Lumi Ispas
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
6y
@Hai Loc, US market is different than the Canadian. I agree with @David N., Karen & Mike Wilkinson.
Most of the high end buyers have taken a hit on the stock market, and they are either renegotiating or exiting deals, while the entry-level buyers finally have a chance to grab properties, as usual on these properties are multiple offers and if they are lucky enough to already be under contract, some are trying to get additional credits, some I see just closing.
Over the last 10 days, I got daily multiple new clients, so in Chicago, the market has not stopped. Life goes on. Kids will start new schools this fall, students will finish colleges and move on. New households are formed, you see the picture.
The showings are the issues, not the buyers not wanting to buy! At these low-interest rates, all my house-hacking buyers are hoping to be able to place contracts on good 3-4 flats even sight unseen and see the properties at the inspection.
The inventory is still low and mostly only vacant properties can be easily shown, so these properties will sell first. I am personally waiting on two new listings to place on the market on April 1st after they are vacated, even though they are ready to go live now. I am also looking at adding floor plans and video marketing to the professional photos to help the buyers that really have to move.
In the end, this shall pass too.
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Melissa Zimmermann
Real Estate Broker · Billings, MT · Member since 2020 · 28 posts · 12 votes
6y
The only change I've seen is the buyers wanting to move to Montana from other states are delayed in traveling here. The amount of new listings and properties that are going contingent haven't changed. I agree @Lumi Ispas this too shall pass. I'm thanking the title companies and the lenders for keeping business moving seamlessly while implementing COVID-19 protocol. @Kevin Zolea you can attempt to renegotiate, or push your closing out further, the market may recover soon and maybe your seller is not in a hurry to close. If the market doesn't continue to move forward, the gap for the housing shortage will lose the momentum it had of narrowing that gap and will again increase.
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Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Overnight buyers market for stocks. That was fast and vicious trapped all the bulls. Man that was ugly. Does that translate to real estate? A lot of things need to happen. I think people forget that real estate is a process and on the most basic level it starts with inventory and demand from buyers.
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Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
6y
This crisis is still relatively new. I believe it was 8 days ago when European flights were banned and the NBA season was cancelled. It quickly escalated from there.  Schools were cancelled. And the restaurants, bars, basically everything was ordered closed.
I've had a lot of time on my hands, sitting at home. I've talked to numerous local residential brokers to get a sense of the market. Most said business had slowed rapidly. Others said the low interest rates are propping up the market somewhat, but as the crisis grows, interest rates are not enough. For sure, there are a lot of refinancing. Mortgage brokers are fully employed.
The effects of this rapid economic slowdown are going to strongly manifest itself in the coming months. Many people will be economically strapped, or at least have declines in their revenues. People will be laid off. Confidence in the economy will be low, so business expansion will be curtailed, if not shrinking.
Yes, the sales volume of residential homes are absolutely going to fall steeply. In times of extreme uncertainty, less people buy expensive consumer items. And housing is generally the most expensive purchase people make. I wouldn't buy a house now.
But I am a real estate investor. Great discounts usually happen when large quantities of real estate assets default and become bank owned. This might not happen. The government, both local and federal, are putting moratoriums on both foreclosures and evictions.
Still, as the market becomes very soft, there should be better deals out there. When half the buyers go away, it quickly becomes a buyer's market.
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
6y
Still going strong in Chicago price wise. We do definitely have less showings though. The people buying investment properties here are not the ones getting hit as hard by this they have secure jobs. I do foresee a fall in single family/condos though as that demographic is more service industry, etc. who will have a tougher time.
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David Avetisyan
Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
6y
Let’s revisits this conversation in 30-60 days. Unfortunately, real estate isn’t the stock market, things don’t happen “overnight.”
Stay tuned my friends!
3 Reply
Erik Grahn
San Leandro CA · Member since 2020 · 13 posts · 1 vote
6y
I was looking at placing an offer on a duplex in the sf Bay Area. It was on the high side of comps. My agent told me it got multiple offers with 10 being over asking. The home also had foundation problems.... Wonder if it’ll close? As of today in the sfba I don’t think it’s a buyers market but I’ll wait
Not to mention the governor shut the state down for an unforeseen time period.
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Austin Snowdon
Omaha, NE · Member since 2020 · 2 posts · 1 vote
6y
@Hai Loc the low interest rate is spiking. The Bond market is broken right now. I watched interest rates jump from a 3.5(Monday) to a 4.75(Thursday)in 4 days
1 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
It is not a buyers market yet. If things continue, it could become one, but in my market, it is not there yet.
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
6y
Market remains competitive in Milwaukee, my two new listings had 8 and 2 offers, my buyers got beat out on multiple properties this week. I have showings today and for the weekend..
When it comes to real estate people look past a few weeks or even months - you are not going to sell your house for less now, if you can just wait two months. Supply and demand have not changed.
When paper assets crash hard assets like gold and real estate do well.
There are some buyers that will hold off for now and there are some sellers that will hold off for now, so volume might go down for the time beeing, but the balance of supply and demand remains and I don't see 2020 prices soften.
4 Reply
Pete Storseth
Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes
6y
@Jenny Roman
Really? Your perspective is different than others.
0 Reply
Kyle Godbout
Investor · Omaha, NE · Member since 2015 · 366 posts · 184 votes
6y
Crazy times. It’s only going to get much crazier before this mess subsides, in my opinion. Houses are selling very quickly here, but I would guess that will come to a stand still in the near future as infection cases quickly multiply over the next couple weeks. I won’t be buying anything so I can preserve cash. Who knows what kind of financial relief packages will be passed.
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Anthony Michael
Lender · Member since 2019 · 47 posts · 97 votes
6y
I sold my flip in Clearwater FL closes next week. I do however have a slightly higher end flip going on in St. Petersburg hopefully market will settle and not decline. Rehab will be completed mid April probably will refi and hold as a rental until the market bounces back.
1 Reply
Steve O.Pro Member
Rental Property Investor · West Caldwell, NJ · Member since 2019 · 104 posts · 65 votes
6y
@Ian Walsh give it a few months when this directly hits people financially. There’s no movement now because it hasn’t truly hit us. This economy will be terrible!! I love hearing re agents acting like everything is ok- just wait!!
4 Reply
Vaughn Smith
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
6y
@Hai Loc from the residential side buyers are pre approved and ready to go, but i'm seeing showings cancelled by sellers (especially owner occupants) who don't want to risk extra COVID-19 exposure. Vacant properties are still being shown. Commercial deals have slowed up as the general sentiment there is "wait and see". The most hardcore buyers are still in the hunt and actively viewing homes. Serious investors are still shopping for deals. Speculators and newer investors seem to be waiting for prices to hit rock bottom (thats a story for another post)
1 Reply
KerryAnn Fuller Rainey
Real Estate Broker · Clearwater, FL · Member since 2018 · 28 posts · 11 votes
6y
@Hai Loc i’m a realtor here in Clearwater Florida, and I’m swamped! I keep saying I’d love to be able to stay home for a couple weeks, but I’ve been so busy. And will be busy all weekend. Two listings coming to the market this weekend, two more next month, and more buyers than inventory. 🤷🏻‍♀️ For now, business as usual. People still need places to live, there are some people that need to sell and they don’t have a choice right now to sit out. I do have other sellers that are deciding to sit out right now, and I respect their decision. I guess we’ll have to wait and see what happens as maybe more people are let go from their jobs, but a lot of people are working from home. Most of my buyers are still working, so far it’s not an issue. I guess we will see what happens.
1 Reply
Melissa Zimmermann
Real Estate Broker · Billings, MT · Member since 2020 · 28 posts · 12 votes
6y
The situation of today is different then the recession in 2008. @Steve O. there is a housing shortage, where will people live? If housing slows that level of shortage is only going to increase.
0 Reply
Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
6y
I can't speak for owner occupants, but here's how my small multifamily investor list is breaking down:
The lookers who may have been thinking of starting to dabble and the investors who wanted to get started with a very small amount of funds have hit the pause button, as they should. Newbies and those with limited resources should be a bit more prudent when volatility is as it is.
My serious investors- the ones who are already sold on the idea and have the money to do so repeatedly have not stopped. They're following through with escrows. They're signing purchase agreements on new properties. They're asking about our upcoming deal pipeline. Now they're all doing a bit more due diligence, making sure they understand short term expenses, and seeking out more information on the current tenants- which is smart.

As for us, an acquisitions & sales company- We're shifting to keep the demand as high as ever by staying ahead of the curve and offering less to sellers on the front end... basically offering at prices we expect to see once the market softens so our investors still see "crazy deals". For them, the crazy deal is going to have to offer better value. How could it not, when the stock market is offering so much better value? We're also pushing hard into quality affordable housing in markets with strong rental demand to minimize price volatility and keep returns high. With some due diligence and a good property manager, subsidized housing is something we as buyers have had great success with before, and are very interested in while riding this wave down.

It's only been a week and a half folks. Demand for primary residences and even investments is highly contingent upon their buyers' emotions, not just economics.

4 Reply
Terry Z.
Rental Property Investor · US · Member since 2015 · 22 posts · 3 votes
6y
@Jenny Roman
How is renegotiation possible is a sales price is already agreed under contract? It is legally binding already, correct?
0 Reply
Hai Loc
OP
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
Originally posted by @KerryAnn Fuller Rainey:
@Hai Loc i’m a realtor here in Clearwater Florida, and I’m swamped! I keep saying I’d love to be able to stay home for a couple weeks, but I’ve been so busy. And will be busy all weekend. Two listings coming to the market this weekend, two more next month, and more buyers than inventory. 🤷🏻‍♀️ For now, business as usual. People still need places to live, there are some people that need to sell and they don’t have a choice right now to sit out. I do have other sellers that are deciding to sit out right now, and I respect their decision. I guess we’ll have to wait and see what happens as maybe more people are let go from their jobs, but a lot of people are working from home. Most of my buyers are still working, so far it’s not an issue. I guess we will see what happens.

I heard people are partying at the beaches in Clearwater while others are shutdown
1 Reply
KerryAnn Fuller Rainey
Real Estate Broker · Clearwater, FL · Member since 2018 · 28 posts · 11 votes
6y
@Hai Loc yes Clearwater Beach has been packed. They’re all starting to be shut down, Clearwater Beach will be shut down starting tonight at midnight. It is a popular tourist destination, a lot of people on spring break and here for spring training brought a lot of people in our area, which is typical for the end of Feb through mid April. Most of the locals avoid Clearwater beach during that time, and instead go to the other lesser known beaches. Wednesday I went to another local beach, that’s not as popular, and everyone kept their distance from each other and it was fine.
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