We don’t have a CoronaVirus vaccine but we do a solution for your Real Estate needs.
We are navigating our way through these dynamic, unprecedented times caused by the global COVID-19 (coronavirus) pandemic.
As the situation continues to affect our world, we wanted to reach out and update you on how we can support you—our clients in navigating the current real estate market here in Santa Clara County.
The bottom line is we are realtors, not epidemiologists. However, we can keep you up to date about the current market situation, give you some recommendations, and share with you several ways to help protect buyers and sellers during this time of “social distancing” and “self-quarantine.”
Current and Short-Term Market Projections
As a result of COVID-19, about half of the buyers and sellers have put their plans on hold. Therefore, we do have a lower number of listings than we usually see this time of year.
Because the pace of sales has also slowed down, we have seen a rise in the months of inventory. Last month in Santa Clara County, we had 1.3 months of inventory. Right now, there are 2.2 months of inventory. We predict that once the shelter in place order has been lifted, we will see a surge of new housing inventory come on the market.
The thing to remember here is that this is not 2008. Although we are in a recession, it’s likely to be a short-lived one because our economy and our financial system were on track before this virus occurred. Keep in mind that in three of the last five recessions home prices have actually increased before the end of the recession. Right now, 78 percent of the homeowners in Santa Clara County have at least 50 percent equity in their homes. Therefore, we do not expect to see a flood of inventory as we did during the last recession.
What does this mean for the broader real estate market?
This spring we can expect to see the lowest interest rates in a generation. Currently, the average 30-year fixed mortgage rate has sunk to 3.29%, which is the lowest since Freddie Mac started tracking rates in 1971. Experts forecast that rates could go even lower.
Even if the economy continues to slow, the two months of inventory, currently available across Santa Clara County is not enough to meet our region’s housing needs. Therefore, inventory is likely to remain tight. We do not have enough homes in the Bay Area to satiate the current demand.
Low-interest rates combined with low inventory will, in our opinion, continue to prop up our real estate market.
Market short term projections over the next 6-8 weeks:
The current market still has something to offer for both buyers and sellers
Housing remains a desirable asset class both for acquisition and investment
Inventory remains low as some sellers are less likely to list homes in the short term
Home prices will remain stable for the time being
interest rates are at historic low rates creating an incentive for buyers
New Buyer and Seller Protections from C.A.R.
The California Association of Realtors has released the CVA-3/20 Addendum/Amendment, which provides some unique protections both for sellers and buyers. This addendum provides the ability to reduce the risk due to the uncertainties surrounding the Coronavirus (COVID-19) pandemic.
If you would like to discuss the details of these protections, please call the main office @ 408-740-0007 and speak with Sean Cooper.
Navigating the Real Estate Landscape during “Shelter in Place”
Is it still possible to buy or sell a home during this crisis?
The answer is YES! Your safety, our team’s safety, and the safety of our community is our highest priority right now. There will not be any open houses for the foreseeable future. Therefore, we have implemented ‘social distancing’ procedures that will not only help you find and purchase a home but maintain social distancing protocols set forth by our counties.
These services include:
Our Exclusive Home Finder System – We have developed a system that can teach you how to search the market like a real estate agent. Showing you how to access virtual tours. Maximizing your time and effort and ensuring that you never miss a great opportunity.
Teleconferencing for Appointments
Personal Virtual Property Tours with Facetime and Video
Sanitize Properties Prior to Showings (where applicable), Our team can provide new MLS sheets to avoid touching the ones used by others. We will arrive at the property prior to your appointment and disinfect high contact surfaces ( doorknobs, counter surfaces, etc ) to help provide the highest safety precautions.
If you are not finding the right home online, become a member of our PRIVATE CLIENT GROUP, and receive an extensive list of OFF-MARKET and COMING-SOON properties that match your unique search criteria.
Remember that this situation is temporary, and we will get through it. In the meantime, we will do everything we can to continue to protect you and to be a trusted resource for information and counsel during these trying times.
Have a great month, enjoy this time to catch up on shows and connect with loved ones. You can count on us to continue to do our best to serve you and keep you informed.
OUR INFORMATION HOTLINE NUMBER IS: 408-740-0007