Hope you’re keeping well. I wanted to share the latest in all things real estate.
With SIP came a steep drop in activity across the board. This is typically our busiest selling season of the year. However, I am seeing activity pick up since bottoming out in late March/early April, and will presumably continue to increase as SIP eases.
In terms of showing properties, there are absolutely no open houses allowed. The updated edict as of May 3rd is as follows;
1. The order extends the shelter in place restrictions to May 31, 2020.
2. The order defines real estate agents as “essential businesses”, but places the following restrictions on real estate activity:
a) Appointments and other residential viewings must only occur virtually;
b) Or, if a virtual viewing is not feasible, by appointment with no more than two visitors at a time residing within the same household and one individual showing the property; and
c) In-person visits are only allowed if the homeowner(s) is absent from the property.
Vendors allowed in. Real estate inspectors, appraisers, photographers, and as of yesterday, stagers are now allowed to enter homes as long as the homeowner(s) is not in the property.
It was not surprising to see April’s sharp plunge of new listings. We had approximately 60% drop year over year in new inventory coming to market. However, I am starting to see a daily increase in inventory. As of Thursday afternoon, there’s 427 single family homes and 475 condos available under “active” status. Additionally, there’s 107 homes and 130 condos under “coming soon” status. Active status is visible to the public on the MLS including Zillow, Redfin, Realtor.com, etc. Coming Soon is accessible to agents only on the back end, which gives me a good indication of the market ahead.
Total sales in April consisted of 160 single family homes and 129 condos. Two of the largest sales were on the north end of town at 2420 Pacific Ave for $22M (initially asking $28M) and 2646 Union for $19.5M (initially asking $29.8M).
2646 Union Street sat on the market for 226 days before closing.
Median sales price in April for homes and condos actually showed a slight increase for April. However, bear in mind that the offers were accepted 3-4 weeks prior to closing.
*More of our year over year comparison charts are below.
Lending rates fall but restrictions rise. Mortgage rates continue to reach historic levels. Wells Fargo alone is offering mid to high 2% for fixed, and as low as 2.375% on a 7/1 ARM. But all lenders have tightened credit scores + down payment qualifications.
Outdoor space was always high on a list, and will be in more demand now. I’ve seen many of your yards (since I helped you buy it 🙂 and you must be loving it.
Forbes recently surveyed that more space (for office/gym), advanced technology, and private outdoor space will be the most in demand features in a home.
And here is our 2020 vs 2019 Spring Market Comparisons
I’m thinking of all you and your families. Let us all stay healthy and in touch.
Closing Notes with Par
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