Since the pandemic started in March of 2020, there have been many changes and unexpected effects/conditions/outcomes in many professional industries. Licensed real estate brokers and appraisers are in, perhaps, one of the more unique situations directly stemming from the COVID-19 pandemic: an enormous housing boom that has generated a frenzied market of high sale prices, even higher offers, and extremely low mortgage rates. Just like the pandemic itself, these conditions are unprecedented and have been rocking the relatively steady industry.
There are likely a variety of conditions that intersected to create this particular current market. Although economical and other similar conditions have been greatly altered with the pandemic, one cannot ignore the human impact rooted in conditions of life. For many people who normally experience a hectic daily life, they suddenly found themselves working remotely 100% of the time. This caused many to reflect on their current living situation and many reached the same conclusion: it was time to buy a house, especially if conditions of the pandemic created the reality of being home most of the time. There is also the simple fact that more people were saving money due to lack of commute and the closure of mostly everything. Thus, many people were finally simultaneously emotionally/mentally and fiscally ready to pursue the housing market. This newly gained interest and “supply” for licensed real estate professionals certainly fed the current housing boom.
The mere fact that many more people are looking for houses than in a normal market also creates the increased prices. People are ramping up their initial offers to far above the asking price simply due to the sheer amount of people also vying for that same house. The potential buyer may assume that the only way to get the house is to outbid all other parties, which may or may not be true; in the end, however, it results in most others operating in this same way, and this causes houses to be sold tens of thousands of dollars above their asking price not because the house is valued as such, but because of the amount of people competing for one particular house. While this condition is not uncommon in the real estate industry, it is usually not a widespread phenomena across all standard houses.
Whatever the reason for this housing boom may be, licensed real estate professionals must navigate these choppy (but exciting) waters with care and preparedness. Given that these are unprecedented circumstances, the eventual fallout may be just as unprecedented.
Williams & Nickl has represented thousands of licensed professionals and their licensed business entities who face issues with IDFPR. If you find yourself in such a situation, Williams & Nickl can provide the help you need.