So, I have had a fair number of people reaching out in the last few weeks about what we are doing and seeing in the Killeen area regarding sales, prices and other effects directly related to Coronavirus so I wanted to give a few “real-time” observations and I will update as things evolve.
What Changes Are You Seeing in the Killeen Market?
First and foremost, I want to say that I think people’s response to a difficult situation has been awesome. I know there is a lot of back and forth on how much people should be distancing, how serious everything is, etc *but* what I can say is I think that most folks I deal with daily are striking a good balance of being smart and safe with being able to get things done and not let this totally upset their day to day life. Very proud!
As far as market changes go, as of right now, not a ton of change honestly. I have been getting more calls from people considering selling their house but really it has just been an increase in people contemplating a sale, not actually ready to sell now. Since I’m not an agent I don’t deal with a lot of MLS listings (except my own) but I have talked to a few agents and brokers and they are seeing prices holding for now and people are still buying. It does seem like the number of people listing is decreasing some but from what I gathered that isn’t a super formal thing at the moment but just something they have noticed.
Everyone I have spoken to has also mentioned that financing is a little tight so buying might become more difficult for both investors and everyday folks as banks and institutions pump the brakes on new loans.
Crystal Ball Time
That’s all great, but what does the future hold? Well, anybody that tells you they know is lying or a fool but I *think* that while we won’t see the total meltdown that some are predicting I do think the economy and real estate market will soften and will do so even more so in small to mid-sized markets like Killeen, Copperas Cove & Temple. I think that at the very least we will see quite a few homes come on the market as folks who had one or two rentals out of state start to sell off their holdings and folks who (unfortunately) were already struggling may wind up needing to sell properties.
Are You Still Buying Houses in Killeen?
Short answer, yes, we buy houses Killeen still, just the parameters have changed a bit. As I type this I am also working on a contract for a property and getting ready to close on another on Tuesday. That said, I am definitely being a little more conservative with numbers as it is just tough to know what is coming up in three to six months.
I’ll be honest, I have made offers on two houses in the last week and both were about 10 to 15 percent below what I would have offered a few weeks ago. That is in part to build in a little cushion in case things go south (risk vs reward!) and also a little because our pipeline is pretty full so prices have to be better than average for us to lock up cash at the moment. Both of those houses also needed a lot of work, which is fine, but does affect the overall offer so we really weren’t that far off from “full price” anyway.
Final Thoughts
We are here to help and we know that this may wind up a trying time. I will say that I am personally committed to helping people explore the best options if you think you need to sell a house. I am happy to walk you through options you may not have considered that may let you keep the house or get the most money if selling is the best option.
I look forward to talking to you and stay safe out there!
-Dominic
