Can sellers and buyers expect the process to be business as usual as we cope with the coronavirus?
Q: We are emptying our South Bay home and getting it ready for the open house staging and schedule. Will the coronavirus headlines hurt our listing and its sale price? What would you do in our situation?
A: On March 9, 2020, the National Association of Realtors (NAR) proactively released a document concerning issues dealing with the coronavirus, almost all of which address discrimination — for example, “interrogating” visitors before they are allowed inside an open house. That same day, NAR issued its daily newsletter titled “Buyers expected to face fierce spring bidding wars” and noted that one ramification of the coronavirus is the lowest interest rates in history. The article ends with the line: “Twenty-five of the nation’s 50 largest metros saw their inventory decline by 20% or more. The most significant drops were in Phoenix, San Diego, and San Jose, California, which saw decreases exceed 36% annually.”
The California Association of Realtors (C.A.R.) is not revising its current 2020 housing market forecast due to the coronavirus. However, C.A.R. did create a document of Top 10 potential issues that
could elicit questions from buyers and sellers. Here’s the 10 topics reviewed:
1. Forecasts have been downgraded, but few economists are calling for recession yet.
2. Mortgage rates will likely remain low, or even fall further as a result of the coronavirus.
3. Domestic buyers may be discouraged by rising uncertainty and recession risk, but is it still a good time to buy? (This week, mortgage rates fell to an all-time low level.)
4. Financial market volatility could reduce demand for luxury homes, but also create potential opportunities for luxury homebuyers.
5. Demand from foreign homebuyers could be curtailed over the near term.
6. Foreign home sellers may face closing delays.
7. New-home construction in California could slow further, exacerbating already-tight supply.
8. Low rates and fewer new homes constructed should place upward pressure on home prices.
9. Offsetting effects leave C.A.R.’S housing market outlook unchanged, for now.
10. Eventual rebound will take longer than it did with SARS in 2000.
To read the entire Top 10 article, visit my website, or ask your agent for a copy. In the meantime, keep packing.
Questions? Seeking practical and tactical methods proven to help home sellers and homebuyers? Contact Realtor Pat Kapowich, a Certified Real Estate Brokerage Manager, at 408-2457700, or visit www. Siliconvalleybroker. com Broker License 00979413.