This year we may even get a Miami Heat vs. LeBron final. In real estate, we expect a strong finish to the year. Like the Heat, business will turn it on in the fourth quarter.
Business is coming back very strongly. Restaurants are beginning to open; cruise lines are booking travelers for 2021, hotels are operating, and real estate is in a veritable V shape recovery vis-à-vis February of this year. Can I get a V, please?
At The Keyes Company, sales are up 7% to date (through 9/21) in written volume over 2019 with $5b year-to-date on the books. This includes closed sales and pending sales. The key to the success is the company culture, the people, associates, management team, staff, and a hands-on leadership team that is in the trenches to help serve the market. It also is a community of care with 50-60 charitable organizations served directly and indirectly throughout South Florida. All the while, we are leaders in the market!
Commercial Real Estate is also staying strong especially in the multifamily and industrial sectors. Multifamily addresses the need for workforce housing while Amazon expanding to Homestead is a sign of the expansion of order fulfillment centers in Miami-Dade. Office space and retail are lagging and there is some question as to how the new normal will have an impact. What has tech done to these sectors during the pandemic? With office space, a recent survey by The Houston Board of Realtors resulted in 11% of the agents saying they will go back to the office; 30% will never go to the office and 50% will be in and out. How is working from home affecting your industry? Is it a good time to invest in office space?
Virtual learning is impacting realtors with 90% of the agents that were surveyed in Houston wanting to learn online. Technology is also reducing the number of visitors that go to open houses. Agents are including more information on the listings to help the prospective buyer decide to visit only if the home is a fit, like Matterport interactive floor plans. We continue to offer the service that previews properties for our buyers with a walk through the home using a live video feed. Another change is that with technology, buyers and sellers expect immediate responses to digital prompts. Whereas before, it may have been overzealous for an agent to respond quickly, now we must be fast and respond within the first five minutes.
The mortgage market is booming. 20 million people nationwide should refinance their homes because it would save $300-500/month. Buyers are taking advantage of the lowest rates ever, condos are coming back, and it is all contributing to a flooding of the pipeline where lenders are falling behind. To that end, if you are selling or buying a home, expect delays to the closing date. Have contingencies to get through a likely need to extend the closing date and avoid the emotional attachment to a specific date. Easier written than done.
This intensity is not sustainable. The surge is because of Covid-19, the exodus to single family homes and low interest rates. We need inventory of homes to satisfy the demand. What an opportunity to cash in on a seller’s market. Call us when you are ready, please.
Hello autumn, the snowbird season is coming. We are looking forward to a fantastic finish to 2020!
Can you imagine what this town would look like normally with the Heat in the conference finals? Bring it on Le Lakers!