What a week this has been! With ongoing closures and new directives because of the Coronavirus, life as we know it has been changing almost daily. Changes are also occurring in the real estate world, but as of now homes are still being listed, viewed, going under contract, inspected and sold.
‘Social distancing’ is the new watch word and the couple in the photo above is demonstrating that as they headed to closing after doing the final walk through of their new home. I would normally have headed to closing with them, but as of this week standards are that only those people signing documents are present at closings to minimize exposure.
Here are some of the changes I have been seeing…
I publish the Market Watch you see here every week in my e-mail newsletter. (Send me an email to receive it weekly.) New listings and pending sales continued their upward trend this week, but as is always the case with human nature some buyers and sellers are more nervous than others about the uncertainty caused by the Coronavirus.
SELLERS
I had sellers cancel a staging consultation this week for preparing their home for sale… wanting to minimize social contact, but also evaluating whether to sell or re-finance given the low interest rates coupled with low inventory uncertainty if they buy another home.
Other sellers are anxiously awaiting appraisers, who are swamped because of both purchases and re-financing due to interest rate drops.
Home staging consultations are also available remotely, an option likely to become more and more attractive as the shutdown drags on.
Reviewing and signing contracts and purchase agreements electronically from a distance has been a frequently used option for some time. Technology allows us to minimize contact for safety.
BUYERS
Nationwide, 48% of REALTORS said this week that homebuyer interest has decreased due to the Coronavirus outbreak. Uncertainty brings caution to both buyers and sellers. That said, low interest rates are attractive and support buyer demand. I have a buyer who recently locked in at 3.375% with no points and 10% down!
Shortage of inventory continues to be an underlying problem but fewer buyers could be a welcome relief to buyers who hang in there… perhaps competition will relax.
Buyers and sellers are adding extended contingency timelines and provisions in contracts to address the uncertainty of Coronavirus COVID-19.
SHOWINGS
Sellers may limit in-person showings, and RE/MAX Results is no longer allowing overlapping showings on our listings. For the purpose of social distancing, only one party may view a home at a time. Advice to buyers is to limit in-person showings to final consideration after drive-bys and virtual tours. While in the home, touch as little as possible.
Open houses are still taking place, but often limit the number of visitors in the property at the same time.
Showings throughout Minnesota have been significantly ahead of last year for most of this year, but have dropped since the Coronavirus outbreak. RE/MAX Results showings were ahead of last year on Sunday, then showed a big drop on Monday when broad shutdowns occurred, including school closings. Showings have crept up a bit since then.
INSPECTIONS
One of my buyers had an inspection yesterday at a home in University Grove designed by noted mid-century-modern architect Elizabeth Close. Usually Structure Tech encourages buyers to walk with them throughout the entire inspection to gain an understanding of their new home. Again, new guidelines are that they are no longer encouraging buyers to join them at the inspection. Instead, they will be happy to conduct a phone review of the inspection after they have sent out the report. Buyers may still attend if they wish, but they not encouraging it.
I was sad to obediently stay away and not have the opportunity to visit this outstanding home again, but my buyer was there… she snapped the photo above of the inspector doing his thing (note other MCM homes across the street). When we talked before the inspection she was re-thinking whether buying was a wise move in this environment. When I heard from her after the inspection, she said she was madly in love with the house and had a crush on the inspector… he is awesome! 😉
BOTTOM LINE
This is uncharted territory for all of us, but we will make it through with extra precautions… if you are feeling sick, please stay home!
We will continue to provide updates and answer your questions… we are here to help whenever you need it. Buyers are still buying and sellers are still selling!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
