On May 7, 2020, Forbes posted an article which reiterated an opinion that real estate should be one of the first businesses to reopen, as the housing market is a key economic multiplier. While the author of this article was discussing countries like the U.K, Italy, and Australia, the point is equally applicable to the U.S. Many states have removed their stay-at-home orders, and others like California have begun phasing them out.
Also on May 7, 2020 Governor Newsom lifted significant restrictions on some business, including clothing stores, florists, book stores, and sporting goods shops. However, Newsom noted that local officials had freedom to modify the restrictions as they saw fit. That brings us to Los Angeles, as Mayor Garcetti indicated that he would not be reopening the businesses mentioned above. At the Chernov Team, we are a glass-is-half-full kind of team; this could provide us Angelinos with critical information about the housing market, without the risks of reopening prematurely.
If the housing market is truly an economic multiplier, and we expect the housing market to bounce back in a big way once restrictions are lifted, we have a front row seat to observe the market and adapt to whatever the new landscape might be.
While other California localities reopen, it’s very likely that home sales and purchases will jump in direct correlation to how “safe” or “confident” people feel about the state of the world; if the virus is mostly under control, things should return to business as usual quickly. If they are not confident, the housing market will lag until that point.
Assuming people are confident, and the market bounces back, the viewers in Los Angeles will be able to identify shortcomings in the market itself; perhaps loans take longer to process as banks get back up to speed, perhaps closing will take longer because inspectors and appraisers are just coming back to work. Armed with this information, the clever real estate agents will adapt and take steps to prepare their clients as well as find creative ways to speed the process up. The real estate agents at the Chernov Team certainly qualify as clever agents. In short, it might take a few weeks, but everyone comes out a winner.
Alternatively, if people aren’t confident, and the market takes a few weeks to get back to normal, once again, us Angelinos are in an excellent position. Not only did we not open too soon, but we would also be reopening when the market was poised to take off. Moreover, the additional time would likely allow lenders, appraisers, and inspectors to get back up to speed before we need them. Thus, when it’s time to open the market up, the Chernov Team will be poised to hit the ground running. Again, everyone comes out a winner.
At the Chernov Team we understand that knowledge is power, and we are in a unique position to observe the market without any risk; that is powerful knowledge indeed. At the Chernov Team we understand that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.
