We are going to get through this. In fact, we are currently getting through this one day at a time. The majority of us are wearing masks, social distancing, and being safe. The question is, when can things go back to the way they used to be? Pre-covid? Will they ever? I was recently struck by a quote on this exact question that left me wondering.
“Today we all know something,” said Marc Lasry of Avenue Capital. “We will be fine in two years. People will be back out, there will be a vaccine. The question is—How long will it take to get back to normal?”
The good news from a real estate perspective? Real estate has proven to be market resilient as has been the case in prior recessions. The spring market, which typically is in full force in April and May is happening now in June, July, and August. The ability to purchase a home has barely been impacted by the pandemic thanks to falling rates and loosening mortgage down payments. Showings have increased substantially (and hopefully will continue with the uptick in positive cases) and are equal to or above average for this same time last year.
Inventory in the luxury market is (over $2 million) is down 25 percent compared to last year at this time in Dallas, and closed sales are down 20 percent compared to last year. But, homes in the luxury market placed under contract in June is up 54.2 percent compared to last year. We are just a couple of months behind but swiftly catching up.
It is also interesting to consider who the Dallas real estate buyer is. As people are frantically buying new properties to get more space for their family to spread out during quarantine, it seems that people are still moving to Texas at a rapid rate despite the pandemic. I have personally seen license plates from New York, Pennsylvania, and Illinois parked in the garage of the apartment that I am currently living in. Maybe this has always been the case? Or maybe covid has sent people’s plans to make a move to the Lone Star State into overdrive.
As for me, I am ready to get back to the office. I know that some of you enjoy working from home, however, for me it is just too lonely and frankly downright sad. I am such a social person by nature and so the idea of not being able to chit chat with co-workers and clients face to face every day is just torture. I am convinced that office life will return, although it could be drastically different than before. I try to remind myself that I don’t actually enjoy, nor do I actually ever spend an entire day sitting in my office. It’s the people that I miss. I know that one thing is for sure—I will be enormously grateful and ten times happier in general when we all have some semblance of the good ole’ office environment once again.
I miss you all. Give me a call if I can help you in any way.