the covid climate of real estate

If there is one thing that seems to be certain in this bizarro world, it is that the Real Estate market is heating up. Ironically enough, this seems to be right in line with all the craziness of the pandemic, murder hornets, record temps, snow in Colorado, and wild fires spreading across the western United States.

The San Diego real estate market has been running rampant with multiple offers burning at all ends and the prices, in turn, keeping pace. We recently listed a single family home located in Leucadia for $1,775,000 and within 4 days we had over 20 showings and 10 offers. The price point that we thought was reasonable and fair seems to be outmatched by the lack of inventory and “COVID-proof” housing. What is “COVID-proof” you ask? Well, it's a term I came up with to describe the feeling one has when they are confined to their home for weeks, or months without physical social engagement. A term describing lockdown, to be more direct.

As “COVID-proof” trickles into the market, it has created its own wild fire and people are on the hunt to find the ultimate COVID resistant stay-away -- the idea of having a place where you can escape the madness without needing to go anywhere. People want to fall in love with their homes now more than ever. These feelings are making people search for a new environment that can sustain their anxieties about the new world.

Sometimes this pressure will make people overact in their process of buying a home; sometimes this means they will make a bid they aren't entirely comfortable with. Unfortunately, or fortunately, whichever side of the coin you are on, this will make people pull out of a deal once the paper trading starts. My last two deals have been situations where I represent the client who didn’t get the first offer accepted and had to patiently wait for the first party to bail out. I know this is a tough position to be in, but it has paid out both times for my clients and they were able to secure the property without paying more than they wanted.

I will be the first to tell you this is not a strategy I like to use, nor do I think it is a good one. However, as a second generation Broker and after 20 years of selling real estate in San Diego county, I know when to hold some ground. Not that we could ever compare Real Estate to war but, we pretty much are soldiers on the front line of a new era and new battles come up all the time. Without a level head and nerves of steel, this market will eat you alive. The most fascinating thing about this whole story is when tomorrow comes, the market might have already changed. So, take a few deep breaths, sit with your intended direction a little longer right now -- this will lead you to the right decision.

I hope everyone stays healthy and sane during this challenging time and please know, you are not alone.