Over the last few weeks, my clients have had a multitude of questions and concerns during these uncertain times. I would like to address them here, and answer as many questions as possible with the most reliable information available to date.
First and foremost, my top priority is the health and safety of my clients, fellow Realtors, and our amazing community. I will continue to follow all CDC, WHO and California Association of Realtors (C.A.R.) guidelines and incorporate these parameters into my day-to-day business.
Secondly, although the federal government has funded an economic stimulus package, it will take time to unravel the economic ramifications on our local real estate market. This unprecedented health crisis is unlike any real estate market disruption we’ve experienced before. Unlike the S&P 500, the real estate market is not summarized in a daily snapshot.
As our social distancing restrictions ease, the real estate market will return to business as usual. Until then, buyers, sellers, Realtors and everyone else in the real estate industry will continue to conduct business the best they can while following all pertinent rules and guidelines. Below is a brief summary of what’s happening in the San Diego real estate market as of April 2020:
Today’s Market:
- Real estate transactions are still ongoing. Escrow, title, lenders and notaries are working. Existing transactions will still close although there may be some delays. Appraisals, home inspections and photography is delayed so new escrows will most likely extend beyond the traditional 30-day escrow
- Mortgage rates are historically low, and may go lower.
- Virtual showings and tours are allowed.
- Today’s virus conditions are different than the factors that led to the housing decline in 2008. It’s anticipated the housing market will remain strong with low inventory and interest rates. People still want to buy homes, as real estate is historically a solid long-term investment.
- Investors are investing money into real estate in lieu of the stock market.
Buyer and Seller Tools Available to you in the Current Market:
- I’m using a digital platform to schedule virtual tours of homes. If you are interested in looking at homes, please reach out to me to discuss how best to views properties that are still on the market.
- I am sending regular market updates to my buyers, sellers, and anyone who’s interested. Just reach out if you’d like to receive these reports!
- I’m assessing market data on a weekly basis to assess current valuations and pricing. Even in these uncertain times, I want to be sure my sellers are pricing their homes competitively and my buyers are making informed decisions.
Buyer Considerations:
- Review your financial qualifications with a reputable lender as lending terms have changed in the past few weeks.
- Compile a list of target homes and investigate the Seller’s motivation and reasons for a sale.
- Take virtual tours, but rely on my experience and market knowledge for invaluable input.
Seller Considerations:
- Serious buyers are still in the market. Don’t panic and take a “low ball” offer out of fear.
- Realistically it may take longer to sell your home so exercise patience as buyers pivot to virtual platforms.
- Use the extra time to do repairs, organize closets and other home DIY projects to ensure your home is in ideal showing condition.
I realize many of you will have additional questions that are specific to your needs. Questions like:
- How will the new C.A.R. Corona Virus Addendum impact my current or new escrow?
- Fannie Mae and Freddie Mac have eased their standards for property appraisals and verification of employment – how does this affect me?
- Are jumbo loans now more difficult to secure?
- How does the mortgage forbearance program and moratorium on evictions impact me?
I’m available to answer these questions and other concerns you may have at this time. Please feel free to reach out at your convenience and we can discuss how I can best serve you. Stay safe and healthy!
