Bay Area Real Estate – Page 7 – The Real Estate Beat

4 REASONS WE’LL SEE MORE REAL ESTATE ACTIVITY THIS WINTER

Inventory. This one word has a big impact on pretty much every factor of the real estate market.

In the past year, inventory has continued its trend of record low numbers, driving up demand, home prices, and buyer frustration along with it.

But, new data suggests that this winter may see a flurry of new homes for sale. That’s big news for clients who have put off making a move in the last year.

Let’s dive into the four reasons we may see more real estate activity soon and what this means for you and your clients.

There is pent up demand among sellers

For the past 10 years, people have been living in their homes longer than the historical average. Since 2010, the average tenure in a home has been about 10 years. However, we are now seeing that shift.

Plus, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter instead of waiting until the spring.

Of homeowners planning to enter the market in the next year:

65% – Have just listed (19%) or plan to list this winter
93% – Have already taken steps toward listing their home, including working with an agent (28%)
36% – Have researched the value of their home and others in their neighborhood

With all this data, agents should be prepared to help both buyers and sellers navigate another busy winter in 2022.

Homeowners are sitting on record levels of equity

Today’s homeowners are sitting on a whole lot of equity.

According to a recent report, the average homeowner gained about $56,700 in equity over the past year.

That’s a big incentive for many homeowners to make a move into a home that better fits their needs.

Educating your clients on their equity, and the options it gives them to upgrade or downsize their home, might be just the motivation they need to sell their home and buy one that better fits their needs.

Home has taken on a new meaning

There’s no questioning it. Life today looks a lot different than it did in January 2020.

While most of us have spent the better part of the last two years in our homes, it’s made us take a long, hard look at what we really want and need out of our dwellings.

Plus, a recent poll indicates that home has taken on a new meaning for many American homeowners.

According to the study, the top reasons sellers want to move are:

33% – They have realized they want different home features
37% – They say their home no longer meets their family’s needs
32% – They want to move closer to friends and family
23% – They are looking for a home office

And with mortgage rates on the rise, experts anticipate sellers may be more inclined to start the search for that perfect home sooner than later.

It is now cheaper to own than rent

Rental prices have been on a steady incline for the last twenty years, and that isn’t expected to change anytime soon.

According to a recent report by Apartmentlist.com:

“Since January of this year, the national median rent has increased by a staggering 16.4 percent. To put that in context, rent growth from January to September averaged just 3.4 percent in the pre-pandemic years from 2017-2019.”

While most renters think that it’s the cheaper option, we have three words for them: fixed-rate mortgage. As rent continues to appreciate (with no end in sight), homeowners can lock in a payment for the next 15-30 years with little change on their monthly amount due.

However, the biggest incentive for renters to buy comes down to equity. For every monthly mortgage payment made, they’re investing into their financial future. And that equity also continues to build over years of home price appreciation.

To put it plainly, whether you’re a renter or a buyer, you’re paying a mortgage. But you definitely have a lot more financial advantages when it’s your own.

BOTTOM LINE

The 2022 housing market is set to begin with a bang, and the agents who succeed will be the ones who are prepared to take immediate action.

Today’s market conditions mean that we’re probably headed for yet another busy winter season, with real estate experts suggesting there may be even more activity in 2022.

Read this article HERE

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The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

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SOLD by The Caton Team – Belmont

The Caton Team wants to be your home resource, whether buying, selling, or in need of a referral; it brings us great joy when our clients return to us for their next Real Estate need.

The pandemic truly brought home to the forefront. The Caton Team found ourselves entrusted with our clients’ homes once they moved forward. From paint to carpet, to floors to – well – you name it – we’ve taken care of it. We truly love all aspects of getting a home ready for market.

It shouldn’t have come as a surprise when we woke up to an amazing offer in our inbox. Our clients en route – we managed to reach them and they were thrilled to accept this solid offer and move forward with their lives. Each journey is different and we’re here for all of it.

Sold in 2 days, over list price, and closing within the month – we are grateful to help our clients reach their Real Estate Goals.

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We truly enjoyed helping our clients sell their home – mid-pandemic. The Caton Team loves what we do and would love to help you – please enjoy our resources below. Get to know us at through our clients words.

HOW TO SELL during COVID-19 | HOW TO BUY during COVID-19

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HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

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SOLD by The Caton Team – Pacifica

I was so excited to help my teacher clients find their first home after they welcomed another member to their family. Buying during the pandemic is interesting to say the least; we find our clients rely on our expertise and knowledge the navigate the journey home and The Caton Team takes this responsibility very seriously. We educate our clients every step of the way; we provide data and information so our clients can make solid Real Estate decisions. As a result of our working relationship, we can make decisions and move forward at the pace the market insists.

We knew our clients’ price range well and it was obvious how perfect this townhome was for them. Together we drafted an amazing offer, navigated the rocky waters of apprisal and we were over the moon to hand them the keys.

Thank you so much for your trust and allow The Caton Team to guide you home. We wish you many happy years in your home!

We love what we do! How Can the Caton Team Help You?

How can The Caton Team help You?

HOW TO SELL during COVID-19 | HOW TO BUY during COVID-19

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HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

Got Real Estate Questions? The Caton Team is here to help.

The Caton Team – Susan & Sabrina
A Family of Realtors
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Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

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The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

When the Data Lags – The Current Real Estate Situation – Low Appraisals!

Hello Caton Team Readers – I took pen to paper today to share what we’re experiencing in 2021

If the Bay Area Real Estate Market wasn’t exciting enough, now we have a new problem – the data on current home sales is lagging, so much so, that appraisals are coming in low.

The 2021 San Francisco Bay Area Real Estate market is a far cry from 2020. The demand for housing in the Bay Area is at an all time high – higher than ever. It’s typical for agents with single family home listings to receive over 100 calls just from Realtors within days of coming on the market. Some home are selling quickly while others are setting firm offer dates to mitigate the chaos. It’s definitely no time to panic if you’re selling Real Estate in the Bay Area – demand is there. It’s also no time to panic if you’re buying in the Bay Area – as long as you’re focused on a realistic goal and pivot when needed.

With many homes selling in under 7 days and low interest rates spurring a bonanza of refinances, banks are overwhelmed. The pool of local appraisers are backlogged, thus bringing in ‘out of area’ appraisers who are not familiar with the micro-climate of SF Bay Area Real Estate. This pent up demand for appraisers has turned the customary 10 day turn around into a two week wait for the initial appointment and another week for the actual appraisal report. Closing escrow in 30 days has turned into a three ring circus, any sooner – well – I wouldn’t count on it.

But that’s not the half of it! Even if your appraiser is local – we’re seeing dated comparables used, sales data from 2020 even 2019 not adjusted for appreciation or current demand. Though never an exact science; this gap in current value and sold data is effecting everyone – buyers and seller combined.

The Industry Standard is to select comparable properties that sold 1 to 3 months back but no more than 6 months, then the appraiser must adjust accordingly for variance in condition, location, market, demand etc. But some are NOT doing what they should be doing and it shows.

Real Estate is a living, breathing entity. It is constantly changing due to various factors – the economy, interest rates, stock market, consumer confidence, buyer demand, supply etc – So using sales data from 3rd Quarter 2020 – truly doesn’t reflect current demand as we begin Q2 of 2021. Because demand has increased significantly since then – and our buyers feel it.

With pending sales taking 30-40 days to close, that valuable sales data doesn’t become official until after the closing and it’s mucking up the works on appraisals. In a multiple offer situation it may be difficult for a buyer to determine how much is too much to pay and the question remainds – will it appraise? Regardless, the home may be still worth the offer price and often paying the difference today helps a buyer get into a home as this market continues to see home prices increase and demand outpace supply. What you pay today may save you from paying more in the future. Please note, each client and situation is unique and this blog post does not apply to each situation.

If you’re a buyer in this market – and we know – The Caton Team loves to represent buyers – it feels like homes are appreciating week over week – rather than month over month. With multiple offers – you’ve got to be aggressive, write your best offer, often non-contingent and hope for the best. This pace is horrible and buyers (not to mention their agents) are exhausted and rightfully so. This market truly needs some tempering. Clients need time to review disclosures to make sound decisions with the greatest purchase of their lives.

When The Caton Team represents sellers, we encourage our clients to allow the home to be marketed for at minimum 1 week before reviewing offers. I even remember the days we used to say 2 weeks! But with so great a demand for housing, even one week is hard – with many Pre-Emptive offers scooping up homes.

All of this does sound like madness, but have no fear – The Caton Team has been through it – with over 40 years of combined local experience – The Caton Team is here to help!

Heres some tips on how to navigate a low appraisal:

FOR OUR BUYERS…

PLAN FOR IT: When The Caton Team sits down with our buyers to prepare an offer – we provide the data we use to guide our clients so we can discuss an offer price and terms strategy. Sometimes we’ll find ourselves in uncharted waters – where current demand is not reflected in the data. I.E. Pending Sales are higher than Closed Sales. If an appraiser uses the older data and that data doesn’t reflect current demand – here lies the gap between contract price and appraised value price.

So what do you do as a buyer?

Plan for the appraisal gap. When you’re writing that non-contingent offer make sure you’re not maxing out your bank accounts. (If you are maxing out the accounts – it’s time for a pivot but that’s another conversation.) When writing that strong offer – make sure you have ‘competition reserves’ IE money to fill that apprisal gap. Because if your offer is accepted and it doesn’t appraise – the home is most likely still worth it and worth the buyer filling the gap. Why you ask? The stats. If you’re in an inclining market – as the pending sales close and become sold data – the next home may not have an appraisal issue – and most likely the next home will be priced higher than that offer you’re worried about today. However, even situation is unique and requires care and diligence.

ASK FOR A REVIEW: When the appraisal arrives – send it to The Caton Team. We will pull up each address of the homes used in the appraisal report (usually 3) and evaluate if it is a fair comparable. If not – we will submit the challenge with you through the review process with the lender however; just know, the appraisal is often not adjusted. So it’s back to Plan A – Plan For It. When the housing market is in high demand and inclining, it usually pans out for the buyer in the long term to pay the gap today. History will show you – the value of California Real Estate, even with its dips and drops over the years – has been appreciating since 1849. However, this blog post is for general information – each client situation is unique and requires its own course of action.

GET UNDERWRITTEN FOR YOUR HOME LOAN: A buyer is only as solid as their home loan. It’s best to get fully underwritten with your lender. It’s imperative to know your budget inside and out. To understand the monthly outlay, the closing costs, reserves, and a cushion for competition and appraisals gaps. If you’re comfortable with the numbers it’s time to get serious about buying. If the numbers don’t sit right – it’s time to adjust strategy and long term goals. Be open to each adjustment.

FOR OUR SELLERS…

Even with a non-contingent offer – sellers still need to be aware of the market and appraisal issues. Even if your buyer has great reserves, they’re only human and there is a finite amount of money in the bank – no matter how wealthy.

REVIEW BUYERS PROOF OF FUNDS: When The Caton Team reviews offers with our sellers, we take the time to look into the reserves and speak to the lender to discuss these possible pitfalls and ask – point blank – how the buyer will respond to possible situations. Will the buyer agree to pay the appraisal difference? Will the buyer ask for a price adjustment to the appraised value? The Caton Team believes open and honest communication is the cornerstone of good business – so we ask these questions to our fellow agents and open the dialogue towards solutions.

BEST OFFER VS HIGHEST OFFER: When reviewing offers the highest offer doesn’t always mean it is the best offer. There is a limit to what a market can hold. So be considerate when accepting an offer and review the various terms and proof of funds. If one offer is so high there is no chance it will appraise – unless it is a cash offer – that may not be the best offer.

CONSIDER ADJUSTING THE PRICE: Sometimes, even with a non-contingent offer it would behoove a seller to adjust the offer price down to the appraised vaule. Why??? Appraisal issues do not magically disappear. If the difference is data driven, the data is pubic and doesn’t change until new sales close escrow. So two appraisals done the same week could result in the same situation. Of course this is multifaceted as well and some sellers may not need to adjust if they have new or back up offers.

BACK UP OFFERS: Sometimes, it doesn’t hurt a seller to place an offer in back up position. There are various reason why this is a good idea and why this is not necessary. It all comes down to demand. How many offers did the home receive? How many of those offers would the seller consider? Now we’re getting into the nitty gritty of Real Estate – so I’ll save that for a private consultation.

Real Estate is a meeting of the minds, not a twisting of the arm. The Caton Team believes in being kind and mindful to our clients and our fellow Realtors – together – we make Real Estate dreams come true.

This year The Caton Team has faced it all.

If you’re thinking of selling or buying Real Estate in the San Francisco Peninsula – contact The Caton Team for a private consultation. We love what we do and would love to be of service to you and your friends.

Get exclusive inside access when you follow us on Facebook & Instagram

HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

Got Real Estate Questions? The Caton Team is here to help.

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

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Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

New Year – Now What?

Hello Caton Team Friends! Happy New Year!

I love seeing my phone ring with new year resolutions to buy or sell and all the questions that come with it. There is no one blog I could post to aid you – so I invite you to call or email The Caton Team for a personal consultation.

The Caton Team LOVES what we do and happy to chat with our friends and clients to come up with a plan to sell or buy now or later. With so many moving parts – each client’s journey is personal and we can create a plan tailored to your needs.

Not ready to chat? No worries – below are links to the most popular Real Estate topics for you to read at your leisure. But when you do need us – we’re ready to be of service. Call or text us.

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HOW TO SELL during COVID-19 – HOW TO SELL – HOW TO BUY during COVID-19- – HOW TO BUY – MOVING MID PANDEMIC – TRUST AGREEMENTS and HEALTH CARE DIRECTIVES – OUR TESTIMONIALS

Got Real Estate Questions? The Caton Team is here to help.

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

SOLD – by The Caton Team in San Carlos

We love what we do!

We love turning Real Estate goals into Reality – even mid-pandemic.

SALES INFO | 3D TOUR

SALES INFO | 3D TOUR

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Many of our clients are our friends, many of our clients turn into friends. Helping our friends brings us joy!

When it was clear – even mid-pandemic – there was no stopping The San Carlos Real Estate Market – our client took advantage of the opportunity. We found the perfect home for their needs and were able to obtain a bridge loan from Welcome Home Funding to buy it. Once they got them moved in, then the preparations of their previous home for sale started – all during the pandemic. Thank you to all our stagers and vendors for making a new normal and getting it all done!

San Carlos is a robust market and everyone shopping here knows the vaule. Within a few days we found the right buyers – so much so – our seller didn’t need to see any other offers – the one in hand was perfect.

It takes a team to make Real Estate happen – so The Caton Team was very grateful to work with Alana Corso of Dwell – a great buyers agent makes our lives easier.

Like all things during COVID we had our share of hiccups – but together – we made it work.

Thank you Kit for trusting The Caton Team with your Real Estate goals – feels so good to have helped you accomplish it!

How can The Caton Team help You?

Got Real Estate Questions? The Caton Team is here to help.

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

SOLD – by The Caton Team in San Carlos

Helping our clients achieve their Real Estate goals is our number one priority – more now than ever in the time of Covid. As an essential service, The Caton Team is ready to serve. I cannot wait to share the whole story behind this journey as it will bring a smile to your face – stay tuned and don’t forget to subscribe to our blog – TheRealEstateBeat.blog – and never miss a beat! To read more about how The Caton Team can serve you check out our Testimonials.

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The Caton Team – Susan & Sabrina
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Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

Pending in 24 Hours – By The Caton Team

Pending in 24 Hours. The Caton Team feels so blessed to have achieved our clients goal – after months of waiting for the Shelter in Place to shift. We had to change our strategy – but adapting to the situation is what Susan and Sabrina – The Caton Team – do best.

With Virtual Tools, fantastic friends/clients working together – 815 Columbia Circle shined the moment we went on the market. Coupled with this amazing Bay Area Real Estate Market and matched by a very hard working Buyer’s Agent Jimmy and his seriously well prepared buyers – four hours after seeing our wonderful townhome we had an amazing offer in hand with all disclosures signed. Just as The Caton Team does for our buyers. By 10 pm that night our thrilled clients accepted the offer they had hoped for – just 24 hours after going LIVE. After a multitude of showings all day it was so wonderful to know that by that night – we made both buyer and seller very happy. THIS!!!! is why I love being a Realtor.

Our current Covid Real Estate Market is truly the best market but not why you think. Home, more than ever is so important and many of us are reevaluating what is a priority in our lives. Family. Security. Peace of Mind. The American Dream is alive and well and it shows in our market. Those who are selling, have a goal in mind and with clear communication – The Caton Team can achieve your selling goals – swiftly. Those who are buying – know what an opportunity the market is during Covid. The caliber of buyer and Realtor out there is the best quality The Caton Team has seen in our combined 30+ years in local Real Estate. Serious clients are making wonderful deals while obying social distancing and doing most all work virtually.

Whether you are selling or buying – today or tomorrow – give The Caton Team a call – we’re happy to help you achieve your real estate goals or answer your questions.

3D Tour – Virtual Walk Through – Property Information

Welcome Home to the Regatta TownHomes in Redwood Shores

This updated, end-unit townhome is move-in ready. Bright and open, with tall ceilings, this floor plan has a living room, ground floor bedroom & full bath on the first level. Up the stairs a formal dining room looks over the living room area, with remodeled kitchen featuring cherry cabinets, granite counters, built in gas cook top oven range. The kitchen opens up to a great family room area. Upstairs you’ll find the second bedroom & bath with shower over tub. The ensuite features high vaulted ceilings and an amazing remodeled bathroom with deep soaking tub, oversized stall shower and walk-in closet. Attached 2 Car Garage with Laundry. The entire home has been freshly painted, new carpet throughout & update flooring in the bathrooms. Full Disclosure Package available. Home is virtually staged. Click on our 3D tour to walk through 815 Columbia Circle for yourself. This home is move in ready – are you ready to come home?

3D Tour – Virtual Walk Through – Property Information

Virtual Staging by The 3D Pros

Virtually Staged Living Room

Virtually Staged En Suite

Virtually Staged Dining Room

Virtually Staged Bedroom

Virtually Staged Family Room

Virtual Staging by The 3D Pros

3D Tour – Virtual Walk Through – Property Information

For a private showing with Covid Precautions Contact The Caton Team

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654 | EMAIL | WEB | BLOG

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The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

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Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

Testimonial of the Day – From Josh

“If anyone can get it done quickly it would be you two. By far the best Realtors west of the Mississippi.”

– Josh

To read all our testimonials visit The Caton Team Testimonials and Yelp!

Got Real Estate Questions? The Caton Team is here to help.

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

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The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

Want Real Estate Info on the Go? Download our FREE Real Estate App: Mobile Real Estate by The Caton Team

Berkshire Hathaway HomeServices – Drysdale Properties

DRE # |Sabrina 01413526 | Susan 01238225 | Team 70000218 |Office 01499008

The Caton Team does not receive compensation for any posts. Information is deemed reliable but not guaranteed. Third party information not verified.

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Home Selling in the Age of Coronavirus: It’s a Whole Different World

Home Selling in the Age of Coronavirus: It’s a Whole Different World

THIS ARTICLE POSTED AT AN EARLIER DATE – Please adhere to new County Safety Standards.

In the not so distant past, Seattle open houses were packed with home buyers eagerly poking their heads in closets, perusing spec sheets, munching on snacks, and offering bids above asking price in this ultracompetitive market.

Then on Jan. 20, a Washington state resident became the first confirmed case of the coronavirus in the U.S.—and slowly but surely, everything changed.

According to Seattle-based real estate agents, open houses are now significantly more guarded affairs, and some have been canceled outright. Attendance of the open houses that are still taking place has been noticeably lighter than it has been traditionally, and attendees seem to be less interactive—most are doing their best to keep their distance from one another, and don’t dare crack open a closet or touch a countertop without clenching an antiseptic wipe.

“We are seeing a lot more hand sanitizer and Clorox wipes at open houses,” says Wes Jones managing broker with Keller Williams in the Seattle suburb of Bellevue, WA. “We also make sure to wipe down the front door handle a number of times throughout the open house. It also appears that not shaking hands at all is quickly becoming acceptable.”

Meanwhile, more home sellers leery of the potential health risk of strangers at their open houses are refusing to host them.

“We did have one client decide not to have us continue with their public open houses,” Jones says. “We will continue to show their property by appointment only.”

He’s also seen more home buyers pulling out of the market and putting their searches on hold for now. But “the worst-case scenario is that we go from a really hot market to a more normal market,” he says of Seattle.

“I am not naive enough to believe that the overall economy may not be impacted short term by this scare,” he continues. “What could happen next? That remains to be seen.”

How the coronavirus is changing how people sell homes

Welcome to the reality of selling a home in the era of the coronavirus. Anxieties abound, not only about catching the virus that causes COVID-19, but also the volatile stock market, the shaky economy, and general fears of a coming recession—all of which could plunge the U.S. real estate market into a forced hibernation right when it’s supposed to leap into overdrive this spring.

While Washington state may be coronavirus ground zero with the earliest known cases, and some of the highest levels of infection in the U.S., (according to the Centers for Disease Control), the panic is being felt nationwide by real estate agents who’ve noticed a drop-off in the number of home buyers and sellers willing to mingle and make a deal.

“The coronavirus is leading to fewer home buyers searching in the marketplace, as well as some listings being delayed,” says Lawrence Yun, chief economist for the National Association of Realtors®. “In the latest flash survey, 11% of Realtors indicated a reduction in buyer traffic and 7% are reporting lower seller traffic when asked directly about the coronavirus impact on the market. The stock market crash is no doubt raising economic anxieties, while the coronavirus brings fear of contact with strangers.”

Ironically, this downturn comes at a time when buying a home is more affordable than ever. Just last week, Freddie Mac reported that interest rates hit a near 50-year low, at 3.29% for a 30-year fix-rated mortgage.

“The dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions, but it is too early to assess whether lower interest rates can overcome the economic and health anxieties,” says Yun.

Nonetheless, he continues, “in the short term at least, home sales will be chopped by around 10%, compared to what would have been the case, due to the spread of coronavirus.”

Seattle’s housing market: A harbinger?

As for what could happen next, many are looking for clues in the Washington real estate market. It’s still strong, but due to the double whammy of the area’s virus exposure levels and plummeting stock portfolios, experts are watching it closely for signs of decline.

“Anytime you have local stocks like Amazon and Microsoft experiencing a 15% drop, that is a lot of perceived wealth that has been taken out of the market,” says Nick Glant, founding broker at Compass in Washington. “That said, some buyers and investors are looking at housing as a safer asset class than equities given the recent volatility.”

Glant’s biggest worry is whether the virus forces certain areas of Washington to go on lockdown.

“The only thing I would see as a detriment to selling in a significant way would be a larger-scale quarantine situation,” he says. “It will also be interesting to see what happens to relocation buyers should more travel restrictions be put in place. Tech relocation is a significant driver of our market, and if people cannot easily come out to tour properties in advance of taking a job here, they may be more apt to rent in the short term.”

Meanwhile, home buyers in other areas hit hard by COVID-19 (like California and New York) are feeling nervous, too.

“Concerns just started this week,” says Janine Acquafredda, a broker at House n Key Reality in Brooklyn, NY. “So far, homeowners haven’t voiced any concerns with regards to showings, and sellers are still listing without restriction. But I do have buyers and sellers reluctant to attend closings if it involves taking the subway, and one closing was postponed by an attorney because his client was very ill—exhibiting flu-like symptoms—and didn’t know what she had. He said, ‘I’m not going to put myself in that position.'”

How home buyers and sellers can limit their exposure

Ultimately, determined home buyers and sellers will find a way—it may just look a little different than before. For one, the days of lavish, party-atmosphere open houses with finger food or baked cookies may be over, at least for a while.

“I do think agents may rethink hosting large open-house events with spreads of food and drinks where people are picking up plates, napkins, and plasticware along with pouring drinks out of bottles,” says Cara Ameer, a real estate agent in California.

Another way home buyers and sellers are limiting their exposure is by opting for virtual tours.

“As a virtual tour provider in Washington, DC, we are seeing an uptick in demand for video and more elaborate virtual tours so homeowners don’t need to have an open house,” says Roman Caprano at Sky Blue Media. “In our market, homes sell in days, so many agents typically only invest in photos, but now they are purchasing more content.”

“These virtual tours work like Google Street [View] within a house,” says Jones, who uses Matterport software to give buyers a 3D, multidirectional spin through a property.

While it can’t completely replace an in-person showing, says Jones, “a virtual tour can help them understand the house better. For those that are concerned about the virus, this allows them to make a more informed decision about the property and whether to get out and go see it.”

Nonetheless, “the reality is real estate is a contact sport,” says Ameer. “And that means exposing yourself to a lot of potential germs from shaking hands, interacting at open houses, and touching all sorts of doorknobs and light switches multiple times a day.”

As such, she adds, “I think we need to adopt a new normal of practices during this period of time.

“I now carry a canister of disinfecting wipes in my car so I can wipe my hands and the steering wheel after being in and out of houses,” she says. “I have also wiped down lockboxes, light switches, and doorknobs on my listings, and encourage customers to do the same. While you don’t want to make anyone feel uncomfortable, it is better to err on the side of caution rather than worry about exposure. You can never be too careful.”

By Erica Sweeney | Mar 12, 2020

Erica Sweeney is a writer whose work has appeared in the New York Times, Parade, HuffPost, and other publications.

I read this article HERE

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