The Advisor No. 10
ENGEL & VÖLKERS RYAN PERTILE
®
So, this is not how I imagined the first half of the year going! Being stuck at home for the last 2 months has really put a lot of things into perspective however I am very thankful for my family’s health and well being. Every day has been a new challenge with juggling two working parents and a toddler who hangs on you all day, every day. I’m not ready to call this the new norm but I am ready for some normalcy whatever that means! In this edition of The Advisor, I want to address some frequently asked questions and topics that have been raised over the past few months since Covid-19 brought everything to a standstill. 1. The first and probably most frequently asked question that I have been receiving, “is my home value going to decrease as they did in 2008”? Actually, home prices have appreciated 6.3% YOY through April with the national average of medium home prices increasing 8% year over year. As an industry, we are seeing no signs that home values will decrease sharply as they did in the ‘subprime mortgage’ collapse & global recession however this world virus crisis is far from over. So unfortunately like anything, only time will tell but right now there are no troubling indicators to fear. 2. “Is mortgage forbearance a good option?” The short answer, NO! Please do not be fooled by this forbearance trap. This should be a very last resort if you absolutely cannot pay your mortgage. There are just too many negatives about this option and if you need to discuss it in more detail, please do not hesitate to call me.
3. And the last most frequently asked question, ‘is now a good time to sell or purchase real estate?” The market still has a shortage of inventory in certain price points which can make the competition more fierce if you are a buyer however for those considering a ‘move-up’ purchase there is drastically less competition and more supply. As demand continues to grow, the supply of homes for sale will continue to contract even more. Due to the supply shortage comes higher values. If you were one that was considering to position your home on the market this year but hit pause during the ‘shelter at home’ order you will definitely want to have a very specific plan & media strategy in place to maximize your sale. Once the dust settles and the city opens back up, there is a fear of an initial wave of new inventory that could negatively affect some sellers who are not properly prepared with the right marketing strategy to position their property. This would provide those buyers who are ready to act a short flash sale period but the inventory wave will roll out and normalize later this spring. If you are looking to sell, beating the rush could be the best way to avoid the competition! To close, the real estate industry has taken some hard-hit punches during the pandemic! Mainly in the commercial sectors however many economists are calling for the Spring market to bloom late this year and will continue on into the late fall possibly early winter. Buyer demand will continue to remain strong across many price ranges while supply stays low. If you have specific questions in regards to your property value or how to best navigate today’s market? I’m always available to answer your questions. I’m never too busy to assist you or those you know! Check out my latest video on my YouTube channel - Ryan Pertile - where I talk about today’s market during the pandemic and don’t forget to subscribe. -Ryan Pertile
Current Market Stats New Listings = + 4% Closed Sales = +2.8% Avg. Days on Market = 48 Avg. Sales Price = +5.1% % of Original List Price = 99% Inventory of Homes For Sale = +1.7% *Citation: “Monthly Indicators” by Minneapolis Area Association of Realtors
RYAN PERTILE TELEPHONE +1 612-805-0059 E-MAIL RYAN.PERTILE@EVREALESTATE.COM ENGEL & VÖLKERS MINNEAPOLIS 1601 HENNEPIN AVE • MINNEAPOLIS • MN 55403
