Do you want content like this delivered to your inbox?
Share
Share

What is happening in the real estate market?!

Randal Engelmann & Erik Gould

We are Randal Engelmann and Erik Gould, partners in providing exceptional customer service...

We are Randal Engelmann and Erik Gould, partners in providing exceptional customer service...

Jun 23 3 minutes read
Randal and Erik discuss the real estate market in the midst of the turmoil we are experiencing.



Randal:
Why in the hell is a real estate market so strong? Stay tuned.

Erik:
Real estate is one of the bright spots in the US economy right now. But why is that?

Randal:
Why is it? I mean, I think the very first and foremost reason that the real estate market is so strong today is that the incredibly low interest rates. They're not just historic. They are the lowest interest rates this country has ever seen.

Erik:
Record low.

Randal:
Yeah. It's insane how low the interest rates are.

Erik:
And buyers. That's huge.

Randal:
Yeah. And increasing that buying power there makes a big difference in a purchase when the rates are as low as they are today.

Erik:
Absolutely. We've done some videos on the buying power of what the difference of a quarter or half a percentage of a mortgage rate can make and what you can afford. So it's huge.

Randal:
Indeed, indeed. But there's also a lot of things that were afoot before the COVID crisis began, right? So we started the season with people planning to make a move, having to get a new house for school season, moving into new communities, downsizing, upsizing, plans of life. And those just didn't stop. They just took a break.

Erik:
Yeah.

Randal:
Right?

Erik:
And in some ways more things are changing. Job changes, school changes, people being in different locations. It has created even some more change in people's lives. Some more needs for different housing.

Randal:
As you go back and look at some of our older videos from last month, you can see people have started to reevaluate what their needs, wants, desires are. When you're stuck at home for a couple months, people really start looking that.

Randal:
So that's what we're seeing a reaction to here and people's lives do go on. What we're really here to say is summer is the new spring. Typically, our market gets very quiet as we begin summer at 4th of July. And this year we're seeing something very different happened where our spring season is definitely spilling over into our summer. We see continuing, and here's my forecast, until we get to about October and then we're going to be completely preoccupied with the election.

Erik:
Election. That'll be a topic of another video.

Randal:
Yep. Yep. So there you have it. There's our why is the market so strong? We have really strong interest rates. We have the optimism of the spring, and we really have a lot of people that have made plans that they took a break during the pandemic for isolating inside. Now they are getting used to the new normal and getting out and getting on with their plans.

Erik:
Buyers and sellers capitalize on that.

Randal:
Feel free to drop us a line. And thanks for watching. Until next time.

Erik:
Stay tuned and stay focused.

Randal:
And stay focused.

Randal:
I have no idea what my point was going to be.

We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info