March 2020 | Coronavirus and the housing market

Coronavirus and the housing market

I am first and foremost writing to wish you and your loved ones the best during what I am sure has been an unnerving time. Please stay well and look after the vulnerable people in your life. If I can support you in any way, don't hesitate to call, email or text.

If you're having difficulty paying your mortgage, know that some lenders are letting homeowners defer payments (whether they are publicizing it or not). Reach out to your lender directly if you need relief.

Until officials announce a "shelter in place" order, I'm offering clients video walk-throughs of homes or FaceTime walk-throughs to allow them to stay home while continuing their home search. If there's a home you'd like me to view on your behalf, just say the word.

Before Coronavirus, the real estate market was smoking hot (for obvious reasons, this news will go largely unnoticed). But we expect to see a big drop in sales volume--similar to what has occurred in Milan and Seoul--following the outbreak. Because real estate sales involve so many participants--buyer, seller, realtor, lender, appraiser, title and escrow, county recording staff--it's not hard to imagine supply chain issues even in what has become a more electronic sales process.

While the recent drop in stock prices demonstrates the fear on Wall Street, real estate data will take longer to show the impact of the virus. There's no doubt we will experience a slowdown in real estate sales during the pandemic, but whether it will recover in a few months or much longer remains to be seen. Meanwhile, real estate prices don't seem to be taking a big hit.

Redfin's data on new tour requests shows that demand from buyers is dropping as more Seattleites are staying home. Though video tours and 3D walk-throughs are helpful, they're not a realistic substitute for seeing a home in person before making a purchase decision. Our local multiple listing service effectively banned open houses last week. If Jay Inslee announces stricter rules such as "shelter in place" in his address today, listings and sales may come to a grinding halt.

Because of the strength of our economy leading up to this pandemic, many expect the market to bounce back quickly once virus concerns diminish. But it's worth noting that we're in uncharted territory, and the long-term economic impacts of Coronavirus are unknown. If this has taught me anything, it's to put away my crystal ball.

Take care of yourself and stay home as much as you can! We'll get through this together...

Best,
Chad