So, just what is COVID-19 going to do to the real estate market?
We’ve been asked this question several times over the last few weeks, and it’s certainly been on our minds, too. The market has certainly changed some from our last market update early in the year. The truth is, we just don’t know the long-term impacts of COVID-19 on the real estate market yet. What we CAN tell you, is that we have seem some quick pivots, and process changes in our local market. We can confidently say that some of these are for the better, too! Here’s the latest.
Coming Soon Status
This is a new listing status that has been launched by our local MLS (Multiple Listing Service). It is a temporary listing status that allows the home to be marketed to other real estate professionals and their clients directly, but the listing does not syndicate to other web sites from there (think Zillow, Trulia, etc). In this status, the ‘days on market’ metric remains at zero.
Curbside/Drive-up Closings
Most title companies are now conducting curbside or drive-up closings. The title company will request a copy of your driver’s license in advance of your scheduled appointment. On closing day, buyers and sellers will still drive to the title company, but remain in their cars and call the title agent to let him/her know they’ve arrived. The title company will bring all closing documents to be reviewed and signed from the car. Once completed, they’ll come back to notarize and collect the file. This minimizes human contact while still allow homes to be purchased and sold.
Reduced Showings
While real estate is still moving (we promise it is – we had multiple offers on one of our new listings this past week), we cannot deny that overall showings have significantly decreased on listings across Missouri. Check out the latest in this chart from ShowingTime referencing data across the entire state of Missouri.
Increased Virtual Tours
This one is actually a great thing! The desire to minimize leaving the home has created a demand for video and/or virtual tours. This has raised the bar for us as listing agents, and allows buyers to select homes to view only that have true potential and are of serious consideration for them.
Altered Vendor Processes
Photographers, inspectors, electricians, you name it! The theme we are seeing across nearly all of our vendor partners is the desire for homes to be vacant while work is being done. They’ll enter on a lockbox or request you step outside while they get the job done. Again, minimizing contact is the name of the game.
Indirect Changes from Lending
While rates are still near historic lows, we do know that the recent number of unemployed and furloughed individuals is decreasing the number of qualified buyers. Furthermore, lenders have tightened their guidelines. This is the beginning of something that has the potential to impact trends in real estate.
In all, we’re seeing quite a few positive changes happening to our processes and daily interactions with clients and vendor partners. We don’t know the long-term effects of the virus yet, and don’t have a crystal ball to predict what COVID-19 is going to do to the real estate market long-term, but we’ll keep you informed of what we’re seeing as the weeks progress.