Fewer home inspections show there's less buyer demand

I recently spoke to the owner of a very large home inspection company that serves the entire Los Angeles area.

He said that his company does on averages 450 - 500 inspections a week.

Last week, his company only did 250 inspections.

That's a major drop from their average.

This tells me that demand is way down, however, serious buyers are still snatching up properties.

I expect this trend to continue until the stay-at-home order is lifted.

What an amazing opportunity for buyers to finally not have to go up against so much buyer competition!

In my opinion, there will be a buying frenzy after the order is lifted.

Should I put an offer on a home during the pandemic?

During the stay-at-home order, take advantage of less buyer competition and sellers that are willing to negotiate.

Once the order is lifted, I believe bidding wars will come back and sellers will once again be fully in control.

Get a good deal on a home that listed after 3/20/20

Look at listings that hit the market after the stay-at-home order was put into effect.

Use date 3/20/20 and after.

These home sellers were fully aware when they put their home on the market that the stay-at-home order was in full swing, and they decided to put their home on the market anyway.

This tells me that these homeowners need to sell, are highly motivated, and are ready to negotiate.

If you have been facing bidding wars over the last year... if you are tired of putting in offers over the asking price... now is the time to strike!

Once the order is lifted, I believe the bidding wars will start again and the sellers will be back in full control.

Home prices lower because of the Corona virus?

Some home sellers want to get the deal done and are flexible on their selling price. However, the majority of home sellers are not so flexible.

What I am seeing, based on my own research on the MLS, is that there have been several escrows that have been canceled ever since the stay-at-home order has been issued.

The owners of those homes have either chosen to put their properties back on the market, with the same asking price or have chosen to put their listing on "hold - do not show" status.

Housing data from the National Association of Realtors tend to run about a month behind. Therefore, I expect to get some hard data from them on how today's home prices are currently being affected around May 2020.

Episode 36 of The #AskDanielLosAngeles Show

On this episode, I answer the following four real estate questions:

1) Are home prices lower right now because of the coronavirus pandemic?

2) Should I submit an offer on a home during the pandemic?

3) Will future home prices fall because of the pandemic?

4) What should be my home selling strategy during this pandemic?

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