Nearly half of REALTORS®—48 percent—said homebuyer interest has decreased due to the coronavirus outbreak, according to a new survey from the National Association of REALTORS®. That percentage tripled from a week ago, when it stood at 16 percent.
Almost seven in 10 REALTORS®—69 percent—said there’s no change in the number of homes on the market due to the coronavirus outbreak, down from 87 percent a week ago.
“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” says NAR Chief Economist Lawrence Yun. “With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic ‘quarantine’ is lifted, and it’s critical that supply is sufficient to meet pent-up demand.”
“The impact is noticeable on many fronts, and I think we’re seeing that with our sellers. Homeowners on one end of the spectrum are very concerned, while the other end is saying, ‘Bring on the buyers,'” said Coach REALTORS® Operating Officer LP Finn in an interview with RISMedia earlier this week. “We also have the same kind of spectrum with our agents.”
NAR’s latest Economic Pulse Flash Survey, conducted March 16-17, 2020, asked members questions about how the coronavirus outbreak, including how the significant declines in stock market values and mortgage interest rates has impacted homebuyer and seller interest and behavior, as well as new commercial clients who want to lease and purchase property. With respect to the coronavirus, several highlights of the member survey include:
- Forty-five percent of members said the stock market correction and lower mortgage rates roughly balanced out, noting no significant change in buyer behavior.
- The majority of members, 61 percent, reported no change in sellers removing homes from the market, down from 81 percent a week ago.
- Four in 10 members said home sellers have not changed how their home is viewed while it remains on the market. One week ago, nearly eight in 10 members, 77 percent, said the same.
- More than half of commercial members, 54 percent, have seen a decline in leasing clients, up from 18 percent of commercial members last week.
- Eighty-three percent of commercial buildings have changed practices, with the most common being offering more hand sanitizer, more frequent building cleanings and increasing numbers of tenants working remotely.
As the coronavirus and its impact on the industry unfold, RISMedia is providing resources and updates. Get the latest.
I am confident that from the date you collected this data till today…..it has changed. Everyday the corona virus and the stock market reaction is spreading fear in the most negative sense.
We have clients ready to buy but will not leave their homes. Clients planned to use money invested and voided contracts due to the market losing money. We have scheduled transactions at this time well into mid April and pray they go to closing. We are paying for advertising to obtain leads on Top Sites but no leads. This was a sellers market, now it’s nothing.
Every day is a day toward “Recovery”!! Make the most of it, do the things that are most likely to lead to success! Remember your “PIN”. Productive, In-productive, Non-productive.
i.e. : Skype or Telephone your previous clients.
Send out letters or advertising materials to previous clients or new “farms”.
Finish your 45 hours of continuing education or take classes that help you to be more successful. CAR online classes or the like.
Contact your co-agents, friends & clients and ask if they need your help or guidance during this time.
***Enjoy life as you become healthier every day; breathe deeply and get exercise, eat well and in balance and keep your mind actively engaged.
***”Everything happens for a reason……you just have to decide how this is happening for YOU!”
I am seeing the same thing here in San Antonio. My buyer clients were very actively seeing to purchase, but now have decided to wait. My listings are getting no showings from last week. I know things will turn around once we get past this.
Now is the time to do all the things we normally don’t do during the buying season because we are all to busy selling homes. I start every morning with a plan what to do, e mail my clients that fell through the cracks. Contact buyers that are waiting and explain what they can do to be pro active saving money * checking credit report etc. Do a lot of calling and texting. Enjoy life and relax be ready when this will end and it will.
All the media outlets are spreading fear. It’s a virus. It not the black plague. It’s affecting the elderly and the sick and those with weakened immune systems. Like every virus. I’m seeing pictures of this virus now everywhere. Why? Buys more readers and advertising? Stop it!
We are getting less showings here. Got an offer last night, seller countered slightly today, buyer would not entertain at all. Wondering if buyers are thinking that sellers are now at a disadvantage, because of the CoVid 19. We need to pray this is over as quickly as it came!
I have been a Broker since 1979; there have been multiple ups & downs in the market place. This health issue may get worse, but there are always people who need to move to new housing including renters. The ‘pent-up’ market by Summer of 2020 may create a very active housing demand when the Virus gets under control. Reminder: Currently lower interest rates are an incentive for all new buyers to purchase. I emphasized that with low interest rates, & a dip in the activity level, IT IS A GOOD TIME TO BUY. However, caution is the best deterrent to keeping well & staying well. Take Sanitizer products to showings, wear gloves where you feel needed, do not shake hands with new clients, & keep a safe distance between yourself & your client when showing. Everyone should understand those simple precautionary procedures. I am staying active, but cautious at the same time. Eat right & get enough sleep to recoup after a busy day. I wish the best to all active Realtors who want to be in this game after the Virus has surged & begins to level. We will survive this pandemic because of our attention to healthy guidelines.
I have been a Broker since 1979 in which there have been multiple ups & downs in the market place which make for an uncertain income level to any independent contractor. Therefore, the current health issue may get worse, but be reminded “there are always people who need to move including rental parties”. The ‘pend-up’ market by Summer, 2020 may be greeted by a very active demand for housing when the Virus gets under control. I emphasize lower interest rates with a dip in the current activity level means: ITS A GOOD TIME TO BUY!!
My listing is back on the market! Buyer bailed day of closing! It’s a great investment property with ROI. She says because repairs (leaking dishwasher, non functioning bathroom fan) weren’t completed although seller offered to cover the contractor estimate. I know it was fear of market change. Then on another listing, I was waiting for the offer, but buyer decided not to buy right now as prices will be coming down.
In California with a statewide stay at home, we are not able to show property. Praying for relief!