The leaders of Kayla’s real estate team will be speaking with America’s most famous appraiser today at 3pm. There will be a NYC-focus, but I’ve heard all three of these speakers before and it will be worth a listen:
Join us and guest speaker, Jonathan J. Miller, industry-leading commentator, appraiser, consultant, and author of real estate reports, for an in-depth discussion:
- Valuations then, now and the day after tomorrow… Where are the bargains?
- The banking industry. New Corona lending guidelines.
- Re-opening the real estate industry – what, when, and how?
Register Here to receive the Zoom link.
We look forward to “seeing you”.
Miller: It takes 1-2 years for sellers to adjust to new pricing.
Miller wouldn’t commit to the amount of the ‘Corona discount’ but after another month of data, he should be able to see some trends (he writes reports for 35 markets in America).
But logic can guide us.
Corona Discounts:
0-5% below retail: Buyers who hold out for the very best quality and won’t buy a fixer or bad location will probably face competition and have to pay retail. If you can get a perfect match for less then retail, then you did great.
5%-10% below retail: Very unlikely today for top-tier properties, but probably available for the scratch-and-dent homes.
More than 10% off: Perhaps for the inferior properties that have been forgotten – been on market for months at retail or higher and are getting no showings. Finally a lowball offer comes in, agent handles it poorly, and seller caves.
How inferior? Check this out – cash offers only:
https://www.redfin.com/CA/San-Diego/6241-Lakewood-St-92122/home/4900277
Miller did say that he expects excess supply at the end of summer/fall season. But NYC has a strange quirk during the summer – people go on long vacations due to the heat & humidity (month or two). Spring and fall are their big real estate markets, with a pause in summer.
Home prices in some markets may fall but not as far as they did a decade ago — closer to 5 percent rather than 30 percent, said Mark Zandi, chief economist for Moody’s analytics. The homeowners in trouble have better credit scores and more equity in their homes than those who lost their homes a decade ago and are more likely to be able to rebound, he said.