If real estate is deemed an “essential service,” is it business as usual?
No, it isn’t because public health and safety is the number one priority. Where real estate is deemed an “essential service,” Realtors have the opportunity to continue to serve clients provided they adhere to the parameters of the relevant order and take all necessary health and safety precautions, including those specifically mandated in the order, no open houses; limits on the number of people permitted at in-person showings; limiting all other in-person activity; and observing social distancing guidelines set forth by the CDC. Even where real estate is deemed an “essential service,” REALTORS® are choosing to use virtual showings and are limiting in-person activity in all other aspects of the transaction during this crisis. REALTORS® have a special opportunity to lead by example, and to do what they believe is best for their communities and their wellbeing.
“Buyers are still out there, but they’re dwindling. According to recent data buyer traffic was down 25% year-over-year last week.”
Homebuyer demand may have waned in recent weeks as the COVID-19 outbreak worsened, but that doesn’t mean it’s gone entirely.
In fact, according to Fannie Mae’s Home Purchase Sentiment Index, over half of Americans still say it’s a good time to buy a home.
Does that mean the road to a home purchase will be easy? Definitely not. With social distancing orders in place across the country, real estate and mortgage professionals have had to significantly alter their processes. Throw in that sellers are more hesitant to have buyers (or anyone, for that matter) on their properties, and you have a transaction process that’s virtually unrecognizable compared to a few months ago.
Are you considering buying a home during the current health crisis? Here’s what you can expect.
You’ll likely face less competition.
Buyers are still out there, but they’re dwindling. According to recent data buyer traffic was down 25% year-over-year last week.
You may have to tour homes digitally.
Gone are the days when you could just hop in your Realtor’s car and drive from showing to showing, family in tow. Thanks to social distancing orders, the bulk of home tours are now conducted online.
Your agent might FaceTime or Zoom you while walking the home, or you might rely entirely on pre-recorded videos, 3D walkthroughs and interactive floor plans.
The point? In-person tours just aren’t happening much anymore—and the data proving that is pretty astonishing.
You’ll probably have fewer options.
The supply of for-sale homes was already low prior to the coronavirus outbreak, and over the past few weeks, the problem has only worsened. New listings are down 27% over the year and 19% since March 1 alone. The total number of active listings is now 8% lower than this time last year.
The latest NAR Flash Survey: Economic Pulse, conducted on March 16 and 17, found that 48% of real estate agents have noticed a decrease in buyer interest attributable to the coronavirus outbreak. However lower-than-average mortgage rates are tempting buyers to shop around anyway, without any significant overall change in buyer behavior.
You can contact us anytime for more info regarding safety measures we are taking while selling the homes we have listed on the market.
Ramiro & Erica Rivas | 626-497-4606 | 818-257-1054 | The Agency
