There's Going To Be A Culling Of The Herd, But That Was Due Anyway
A report from Lancaster Online in Pennsylvania. "Shifting borrowing requirements, sudden job losses and state-ordered restrictions on real estate activity meant to limit the spread of COVID-19 in Pennsylvania have complicated — and in many cases halted — home sales during what is traditionally the busy spring season. And as Lancaster County real estate agents navigate the straitjacket of restrictions, they’re coming to grips with the idea that the booming housing market from just a couple months ago could soon look quite different."
"'Will there be buyers out there? Will sellers be able to get the same prices for their homes?' said Dawn Brill-Cooper, a real estate agent with Berkshire Hathaway. 'I’m going to try to stay as positive as possible and just hope and pray that our market rebounds.'"
"After years of being renters, William Ojeda and his fiancee, Jeimary Ramos-Malave, began looking for a place of their own last fall. By February, they had decided on a single-family home in a West Lampeter Township neighborhood. As they waited for the April 9 closing date and secured a mortgage for the $300,000 purchase, the global pandemic nearly scuttled their sale as changing mortgage requirements meant they would suddenly need to pay an extra $5,000 to get the interest rate they wanted."
"'Same house, same transaction, just more money,' said the 29-year-old Ojeda, who works as medical underwriter. He said the new settlement date is April 30, the day the lease is up on their rented townhouse in East Lampeter Township. 'It’s been an uphill battle for the last four weeks now.'"
From North Fulton in Georgia. "Some data already shows the coronavirus pandemic has impacted the residential real estate market in north Metro Atlanta. Mortgage qualification guidelines have also been squeezed. Debt to asset ratios have been capped at 45 percent and credit score requirements have jumped from 580 to 640, depending on the lender, said Donna Murphy of Atlanta Fine Homes. 'This, unfortunately, can affect the buying power of our clients,' she said."
From Bisnow on Florida. "In the long term, KAR Properties CEO Shahab Karmely doesn't predict too much damage in the real estate market outside of hospitality. 'There's going to be a culling of the herd in the condo market,' he said, but that was due anyway, since Miami has been flooded with new product. He was hopeful that prices wouldn't drop precipitously. 'The numbers and the data do not support the extreme action that has been taken,' he said."
The Steamboat Pilot in Colorado. "While local real estate experts are trying to keep optimistic that there won’t be a market free fall like the nation witnessed during the 2008 Great Recession, it’s already evident sales have started to dip. Right now is a time for entry-level locals to find a home and potentially not be outbid when submitting an offer. 'There’s a period of time here where there won’t be as much competition for them,' said Jon Wade, owner of local real estate firm The Steamboat Group."
"For buyers, Doug Labor, general manager of Steamboat Sotheby’s International Realty downtown said there are opportunities, and they should remain reactive when properties come onto the market. For sellers, they may have to take a bit of a price drop for their property to stand out. 'We’ve seen sellers that have decided to pull their property off the market, because they feel they’ll come back in when the timing is a little bit better,' Labor said."
The Post Bulletin in Minnesota. "Todd Polifka wonders if he is in the lost year of the housing industry. 'This is one of the worst possible times for us,' said Polifka, as he surveyed a house he is building in Inver Grove Heights, Minn. Polifka looked at the lot itself, a standard size for suburbs, about 70 feet wide. He paid $212,000 before the coronavirus struck. 'How do you put a $350,000 house on that lot?' he said. 'Look around. There are no $60,000 lots here.'"
"The slowdown is similar across the state. 'It could be a lost year, at least for some of us,' said Howie Zetah, president of the Builders Association of Minnesota. He said that as the stock market sinks and unemployment soars, even customers who can afford new homes get jumpy. He predicted a drop of 15 percent to 25 percent in 2020. 'I had two homes, all ready to start, and they decided to wait,' said Zetah, owner of Zetah Construction in Bemidji."
From Noozhawk in California. "As the community grapples with the impacts of the coronavirus, new residential real estate listings dropped 30 percent, pending sales are down by about 65 percent, and loans for the jumbo market -- loans over $625,000 -- have chilled. We are seeing buyers and sellers who have lost their income putting homebuying on hold,' said Staci Caplan, president of the Santa Barbara Association of Realtors."
"Renee Grubb, owner of Village Properties, said many of her clients have either withdrawn their properties from the market or buyers are not interested in looking at the moment. She said sales are off by about 50 percent. Grubb said the market has cooled after March was strong. 'April is definitely off substantially, but again we are listing far less,' Grubb said. 'The number of withdrawals is declining as time goes on. We are not seeing substantial declines in prices.'"
"Caplan said property management is also in a tough spot right now. Each jurisdiction has a different set of rules and regulations regarding evictions. 'There is the quandary of if the tenant doesn’t pay rent, then how does the property owner pay their mortgage, especially since the rollout of the unemployment programs and Small Business Administration loans are not being fully implemented yet,' Caplan said. 'It tough for everyone in the rental market right now.'"
The San Francisco Chronicle in California. "With coveted private beach access and panoramic views of the sunset over the bay, it's no wonder the owners of 49 Terrace Avenue in Bolinas have had trouble letting go. The home has only been on the market a handful of times since it was built in 1935. Its current owner moved out of state about seven years ago, yet she held on to the property. She originally purchased it in 2006 to use as a vacation home, according to sales agent Cristina di Grazia."
"The home came on the market just over a year ago asking $4,855,000. Despite several price cuts, including a $150,000 drop at the end of February, the now $4,100,000 four-bedroom, three-bath home has not yet found a buyer. But di Grazia said the property has had a constant stream of interested parties, mostly from San Francisco, over the past year. She is not concerned that downward pressure from the COVID crisis will cause the price to drop even lower or that the seller will decide to remove the home from the market altogether."
"'It is a place out of another era for one special buyer. There will never be another like it,' she said. 'The transfer of ownership really isn't that much about market conditions. We feel the price reflects honest value. There's no reason to go off the market. Like the house itself, it can stand the test of time.'"
From KMOV in Missouri. "Selling a house during a worldwide pandemic takes some creativity and masks and gloves, but if you thought the coronavirus had hurt the housing market, you'd be wrong. A couple is trying to see a four-bedroom house in Wildwood is for $329,000. 'It's a little bit unnerving to invite people to your house at this time,' said homeowner Yuri Rechtman. Rechmtman and his wife know that potential buyers may want to tour their home that just went on the market Thursday. But they're retired and bought a house in Florida before the coronavirus situation got bad. 'When we planned to move we didn't realize that something like this would happen. So the timing is not the best but life continues,' said Rechtman."