Yes, Coronavirus slowed real estate

YES, CORONAVIRUS SLOWED REAL ESTATE ACTIVITIES BUT IT WON’T STOP THE BAY AREA REAL ESTATE, AGENTS

Kenneth Session

This year would probably have been the best year for the real estate industry, but even now, when it comes to the Bay Area real estate market, things are heating up more than it was expected at the start of the year. But one thing is sure, the novel Coronavirus is behind the recent surges in home buying.

The bidding wars are back, fiercer than ever in many neighborhoods across the East Bay as the buyers get in the market. One of the reasons for pulling buyers in the market is low-interest rates, which could be sustained all through summer because of the virus.

The economic activities have been slowed globally, and while that hurts the economy of a country, it may be good news for the real estate buyers. Right now, millions of Chinese workers have been quarantined; the products they produce won’t be shipped as Ben Bauer, a mortgage banker with Delta Lending Group, explains.

“That means U.S. companies don’t have products to sell, which means it’s going to slow economic activity, and investors will seek bonds and bonds drive mortgage rates so mortgage rates will fall or stay the same. “

Corona Spurred A Buyer Frenzy

In a way, the Coronavirus has brought more demand, creating a buyer frenzy. Buyers feel energized right now, mainly because of the low-interest rates and mortgage rates. As 2019 closed, the demand was very low, but right now, there are more buyers, and they are motivated.

The government lockdown on real estate sales was loosened last month, and the agents and other professionals are now deemed as essential workers, even a good percentage are the realtors who had continued their home shows during the shelter-in-place restrictions. Nonetheless, some new Bay Area guidelines still ban open houses and close contact.

Right now, Bay Area agents, inspectors, and homebuyers are just waiting for a green light to take the opportunities passing them by aggressively. And even though the restrictions were loosened, strict caveats have to be adhered to; no flyers, appointments only, no more than two family members in a house. Once you are inside the house, strict social distancing mandates apply, and the home must be unoccupied by the seller.

“Virtual showings are highly encouraged,” advised public health officials in Santa Clara and San Mateo counties.

We all know what a world real estate industry is. It is touchy, and

its messy people want to see and feel what they are committing to, and as such, pictures and videos can only do so much as inciting a buyer’s imagination, hearts and checkbooks. Agents are forced to work twice as hard, driving back into the neighborhoods with gloves, masks, and as many hand sanitizers as they can get.

The Industry is too Large to go unnoticed

The California real estate industry (residential & commercial) is worth $445 billion and has been a vital fuel in the state’s economy. The relatively high home prices in the Bay Area have made multibillionaires out of long-time homeowners and the long-time renters out of the would-be owners.

Bay Area’s housing market began to rebound in the first two months of the year, followed by some substantial gains in the median home prices and a strong buyer demand after months of flattening prices in 2019. Following the Coronavirus, lockdowns were imposed, turning the stock market into turmoil and creating a state of uncertainty, which ultimately slowed the Bay Area Listings and sales.

Fast forward to March and April, real estate activities and transactions tumbled relative to the same period in 2019. Buyers and sellers alike backed out of more deals, as shown in the MLSListing data from the counties of San Mateo, Santa Clara, Santa Cruz, San Benito, and Monterey. What we do not know right now is the restriction on people who want to move.

Of importance to note also is that the number of home sales in escrow that fell through increased by 50 percent from the same time last year. Additionally, sellers panicked, and twice as many sellers removed their properties from the market in the past two months compared with 2019. And as expected, the number of home sales fell 9 percent, according to MLS Listing.

Despite the invisible killer virus, the shelter-in-place guidelines were loosely enforced, and largely self-regulating were ignored by some agents. Some agents continued to advertised their sales and broker tours until the MLSListings disabled this feature in March. But the pressure is real; most agents want to hit their sales targets, satisfy their clients, and score deals.

Ignorance or Zeal?

A frenzy of buyers, little inventory on the market means that the bidding wars are back. And it is happening everywhere.

Real estate agent Vicky Bearman said in “Walnut Creek, Lamorinda, Alamo, Danville, and San Ramon; there’s just not enough inventory for the demand.”

“if interest rates stay low and inventory stays low, it will probably be a feeding frenzy again.” Tina Hand, president of the Bay East Association of Realtors, said.

With such a situation, you find buyers pushing the realtors to open houses “When it comes down to it, it’s the client’s decision,” he said. “If they have a pressing need, you have to respect that.”

Some agents are much more careful, and before the loosening of the shelter-in-place orders, they had to turn down several clients. A decision that some regret because these clients go-ahead to find other agents who are willing to show them the house. So, you have to wonder, is it determination or just mere ignorance?

“Some agents have been following the rules,” Realtor Alan Wang said. “Some have not.”

The California Association of realtors was perhaps one of the very first realtor association group to urge its members to follow and adhere to the local rules; however, most agents remain confused about the direction to take because some parts of the real estate like lenders, escrow agents and some county clerks offices remained open during the shelterin-place while other was closed.

To understand more about what’s happening on the Bay Area Housing market, and whether it is safe for you to buy or sell or see an open house, contact one of our VIP Agents in the Bay Area. If you are dying to buy your primary residence today, make sure that you know what is going on in the market right now. Talk to Kenneth Session, a real estate guru with the Session Real Estate today to find out more about the Oakland and Bay Area housing market. Mr. Session is also part of the VIP Agents program powered by The Power Is Now Media. To learn more about the program, and Kenny click here.

Kenneth Session President & CEO Session Real Estate

Sources

https://www.mercurynews. com/2020/04/06/coronavirusslows-but-doesnt-stop-bay-areareal-estate-agents/ https://www.bdcnetwork.com/ covid-19-and-real-estate-howcoronavirus-impacting-aecindustry