Party Like It’s Pre-COVID

Everyone is trying to figure out the next move.

You can’t blame them. There’s a lot at stake.

The equity markets have been seesawing in a range. As of today, we’re effectively unchanged in the S&P 500 for the past month.

Real estate investors, agents, and contractors are trying to figure out what’s going to happen with the RE markets next. Anecdotally, I’ve been hearing that things are busier than ever. It was a bit hard to believe, because I’m not in the day-to-day of selling homes. Kaitlin and I have rethought some things, but ultimately we’re proceeding with our plans. That said, we’re not representative of the “average” American.

Then, yesterday, I read this piece from Redfin. The short of it is that demand has now surpassed pre-COVID levels. Here’s the chart porn they include:

Demand is back, but inventory isn’t. The article cites it being down 24% year-over-year. Obviously, this puts upward pressure on price.

It’s too early to say whether this is temporary, pent-up demand, or if it’s sustainable. I have a hard time believing it’s the latter given our country’s failing attempt at properly dealing with COVID. South Korea is making the US look like a third-world country with the way they’re testing, tracing, and handling the virus. Check out this awesome Twitter thread from a journalist visiting the country recently.

Not only are they thoroughly screening travelers, but they’re able to quickly respond/mitigate new outbreaks like the nightclub incident recently experienced.

Meanwhile, the US is attempting to “reopen” without any real measures in place. People are literally out of their minds. Check out this clip from a reporter today:

The thing is… I get it. They should be mad. They should be pissed off. But it SHOULD be directed at Trump and the current administration, because it is THEIR job to be fixing this and they have grossly dropped the ball. Now, local governments are abandoned and left to pick up the slack. It’s disgusting.

I wish I could have each of these people read this thread:

Click through for the full thing. It’s well worth it.

With the way this is all unfolding, I can’t imagine we recover quickly. We could be trapped in this cycle of “reopening”, locking down, “reopening”, locking down for a year or more.

That won’t be good for anyone. It will leave a trail of devastation that will take years to recover from, if ever.