COVIDs Impact on Bay Area Real Estate

How is COVID affecting the Real Estate Market? I have had that question asked of me a number of times so I thought why not share my thoughts on the subject as I'm sure many of you out there have the same question.

For BUYERS:

Those who were getting ramped up for the Spring Market and had their down payments based on stocks were affected the most by COVID. a 30% decrease is some portfolios meant a lot of those buyers were now no longer able to buy. Those folks were impacted the most by this.

Those with cash at the ready are still actively pursuing properties and I've seen listings in Menlo Park sell within 3 days of being put on MLS even during SIP. Sale prices have varied and I've seen homes sell for more than list and other sell for less than list. It comes down to condition, location and desirability.

Let's take a look at 630 Roosevelt Ave in Redwood City, CA as an example.

2/21/2020 - Property Listed for $1,200,000

3/5/2020 - Price Reduced to $1,140,000

3/11/2020 - Property listed as Pending

3/30/2020 - Property Closed for $1,059,000

(Listed by Steve Bianchi of Realty World-Bianchi and Associates)

I check Off-Market and Coming Soon properties daily and I would expect to see inventory numbers spike once the SIP order has been lifted, which is great news for buyers. How do you access these? Give me a call and I can show you.

THINGS TO CONSIDER:

With the Shelter in Place Order, Owner Occupied homes can not be shown AT ALL. If you are considering purchasing an owner occupied home, it needs to be done virtually. Interesting. Vacant properties can still be shown, however only 2 persons from the same household (ie. husband + wife) and 1 agent can be inside the property at a time and 6 ft of distance remains in effect. No Open Houses of any kinds are allowed during the SIP either. Purchasing a home is one of the biggest decisions in your life but could you take the plunge without ever have seen the house in person? It can be risky however with a trusted and knowledgeable agent at your side to guide you, this is the time to lean on your Realtor. Work with someone you trust and who knows the market. They can provide insights into a property or an area that can help your decision one way or another.

FOR SELLERS:

Don't be afraid to list your property! There is so much demand from the initial part of the year that when real estate hit the brakes, buyers were left wanting more. Stocks will come back and with that, those buyers whose down payments were in stock options will return as well. Investors with cash in hand are chomping at the bit to find fixers, multi-unit properties and the like. If you are on the fence about it, give us a call and let's find the solution that's best for you. There is no one size fits all answer to the question which is again why working with a Realtor is so much more important now.

In San Mateo County, Single Family Homes listed 3/1/2020 or after had the following Days on Market per MLS Listings Data:

28 Contingent Properties average DOM 5 Days

88 Pending Properties average DOM 6 Days

53 Sold Properties average DOM 2 Days

IN CLOSING:

The market has absolutely been affected by COVID and it shows in a variety of ways. Listings decreased, meaning less inventory and what inventory was still available was sold pretty quickly in San Mateo County. Things change so quickly here but I hope this at least provides some perspective for you.

I am happy to answer any questions you may have as it pertains to your situation so don't hesitate to reach out.

-Ricky Flores of Compass Lic #02027985

[email protected]