COVID-19 and the NorCal Real Estate Market

Posted by Phil Boren on Friday, March 20th, 2020 at 4:13pm.

As the Coronavirus spreads across the globe, we all face some level of uncertainty. Our NorCal Home Team is working hard behind the scenes to stay connected with our clients and to answer questions about the real estate market. In general, we see the local and state-wide shelter-in-place orders as serious, but short-term influences on the residential real estate market. The question is, how long will any disruption affect our market? As with any disruption, even if it's a a short-term one, markets can be impacted. Here are some recent market trends:




Unique to this recent pandemic has been the mandated closing of all non-essential businesses across the State of California for what is expected to be several weeks. This is expected to affect real-estate transactions, inventory, days on market, etc., and everyone is asking how these things will affect them? If you're selling, we may have to address an increase in marketing time and if you're buying, you may find more opportunity in the market right now, but it may take us longer to get the deal closed. With respect to transactions, we now have a new form to help our clients deal with the contractual issues that COVID-19 presents, particularly timing. Click on the pic below to see the entire form, which helps home buyers and sellers agree on how to deal with unique circumstances brought about by this virus:

 

Coronavirus Addendum

As of this writing, the biggest impact we've started seeing in the market is transactions that "bounce", i.e., ones where buyers who are in escrow end up cancelling the transaction for some reason. Given the relatively low inventory levels across our market recently, these failed transactions have tended to make up fairly small percentages of each sub market. However, in the last few days these percentages have risen quite a bit.

For example, of all Active MetroList® listings in Placer County sub markets today, the number of failed transactions as a percentage of all new listings (5 days or less), has reached as high as 50% in Auburn. In other areas like Roseville, Rocklin, Granite Bay, and Lincoln, we're seeing a range from 25% to 33%. While this increase may be a bit of a knee-jerk reaction by some buyers, these numbers will undoubtedly start to affect our inventory levels, as well as potentially days on market if this trend continues. At the end of the day, we see opportunities in this market for serious buyers and sellers.

Long term, we will be watching these trends and will be happy to discuss the market with you. If you're interested in what the current market trends mean for you, feel free to call/text us at 916-960-8895 or email us here.


(C) Copyright 2014 - 2018, Phil Boren. All Rights Reserved. 

Phil Boren
Call/Text: 1-916-960-8895
Search NorCal Homes For Sale Here
License #: 01351451

We appreciate and welcome your comments below! Please Note: It is our policy to moderate all comments, and no spam will be published. Also, no links are allowed in the body of the comment.

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com