Declining values and lower offers projected
Roseville, CA- When the initial shelter in place orders were delivered in California, real estate was not an essential service. Realtors were subject to fines and license suspensions if reported showing or conducting in person listing sessions.
For a few days last week, there was no housing market and the value of house on the market declined. When this happened, we were negotiating with a buyer on one of our listings. Overnight we had no negotiating power and because our clients need to sell, we were forced to accept an offer which the week before we would have rejected.
Sellers forced to drop prices
Even now, with real estate, title and escrow companies being essential, values are going to continue to decline. There are fewer buyers in the market due to layoffs and general uncertainty. This may be balanced by fewer listing coming on the market but form what we understand lenders are scrambling to revise loan qualifications and valuations which will make it more difficult for buyers to get approved for loans and if they qualify, reduce the amount of the loan. Sellers will be forced to lower their asking price to find a qualified buyer.
Realtors can now show and list houses. To do this they must follow very rigid guidelines such as maintaining social distancing, wearing protective gear, limiting people in the house during showings, not touching surfaces and even signing a Coronavirus Property Entry Advisory. Leave it to the real estate industry to come up with a form!
If you are still considering buying or selling during the COVID-19 environment and have questions, please feel free to call me at the MagnumOne Realty office in Roseville or send an email to email@example.com