After the plunge in homebuilder sentiment as they are forced to face reality and the big drop in existing home sales, new home sales were expected to tumble in March (after already dropping in February – bucking the uptrend in existing- and pending-sales).
New Home Sales crashed by 15.4% MoM – the biggest drop since July 2013 – smashing the year-over-year comparison down 9.5%…
Source: US New Home Sales Have Never Dropped This Much In March… Ever | Zero Hedge
Sales of previously owned U.S. homes dropped in March by the most since November 2015, representing weaker demand that likely is going to get much worse in coming months as the pandemic bears down on the economy.
Contract closings declined 8.5% from the prior month to an annualized 5.27 million, the slowest since April 2019, from a downwardly revised 5.76 million in February,
Housing inventory picked up a little in March but remains down 10.2% YoY and at the lowest level for March in history.
“Based on what we are seeing at the moment, don’t be surprised if the sales activity could be down as much as 30% or even 40% in the next couple of months,” Lawrence Yun, NAR’s chief economist, said on a call with reporters.
Source: Existing Home Sales Tumble In March, Face 40% Collapse, NAR Warns | Zero Hedge
The National Association of Realtors reported a stunning decline at the end of March. Hopefully, when we all come out of lockdown, there will be plenty of pent up demand.
On March 10, my husband and I decided to list our home this spring—smack in the middle of the coronavirus pandemic.
This was not a decision we took lightly. Derrick and I had been thinking about putting our Chicago condo on the market for a while. Having lived in our two-bed, two-bath home for four years, 2020 was going to be when we’d finally “settle down” somewhere quieter and closer to our families.
Plus, we figured at the time that getting in on the spring buying season would be key.
On March 11, we emailed a local real estate agent, Paul Barker of Barker Group, who specialized in our Northside neighborhood and had sent us a marketing flyer last year. We made plans for the three of us to meet at our condo a few days later.
But that week, as things began to really get weird in Chicago—like panic shopping at grocery stores and sports seasons canceling—we questioned whether we’d need to meet virtually instead. Barker assured us we’d be fine, however.
“I need to do a walk-through, but we will keep our distance, and I won’t have to touch anything,” he told me. “Then, after I’ve researched and put together a plan, we can have a virtual meeting to go over the marketing strategies and pricing.”
The good news with moving forward as planned, our real estate agent told us, was that online traffic was actually up from the previous month. But with showing requests down, we’d have to up our game online. How? By adding a 3D virtual tour to our listing. Creating a virtual tour would entail hiring a specialized photographer and equipment—which our agent’s firm would provide.
Source: ‘Why We’re Selling Our Home During the Coronavirus Pandemic’ | realtor.com®
Click on the link to see what Realtors are doing with 3D virtual tours to keep selling during the pandemic.
“I don’t really think it’s worth it,” says Dahl, who’s losing about $5,000 in income each month his business is closed. “I don’t really want to pay four mortgage payments in one.” Dahl is one of many thousands of Americans who are having trouble making their monthly mortgage payments due to the coronavirus pandemic—or will soon, if the crisis drags on.
In the past month, nearly 17 million Americans have filed for unemployment as shelter-in-place orders, social distancing measures, and nonessential business closures went into effect.
Last week, economists estimated the unemployment rate was about 13%—worse than during the Great Recession. And those numbers don’t even include many out-of-work, self-employed, and gig workers along with those who’ve had trouble filing their claims because unemployment offices are overwhelmed.
The widespread misery spread by COVID-19 has left many homeowners scrambling to figure out how to pay their mortgages. Homeowners with government-backed loans—and even many without—are being offered up to 12 months of forbearance, doled out in 90-day chunks. But this temporary fix could result in another wave of foreclosures if additional assistance isn’t provided. Many homeowners could be asked to pay back all of those missed mortgage bills in one lump sum at the end of the forbearance period, a near impossible feat for many who can’t afford their payments today and don’t know when the economy will recover.
Fannie Mae, Freddie Mac, and the Federal Housing Administration say their borrowers, who make up slightly more than half of all buyers, are never required to make lump-sum payments. They also offer various assistance plans, some more generous than others. But even those homeowners will also eventually have to make good on what they owe, a hardship for those out of work. Those who can’t could eventually lose their homes.
Source: Mortgage Forbearance Is Not All It’s Cracked Up To Be | realtor.com®
As the coronavirus epidemic roils American society, it is totally upending the world of real estate. The realtor.com editorial team is tirelessly covering the impact of the pandemic on trends in the housing market, where mortgage rates are heading, and the outlook for home buyers and sellers. We’re also full of suggestions on what to do with your home if you end up cloistered indoors, whether it’s self-quarantine or sheltering in place. Here’s a quick guide to the stuff you need to know:
Source: The Coronavirus, Real Estate, and You: Our Coverage of the Pandemic | realtor.com®
Click the link for a comprehensive series of links to everything you wanted to know whether you’re a seller, buyer or just thinking about it. Really a useful collection of information in one place. – Ben
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Source: 3970 Spencer St, Las Vegas, NV 89119 – realtor.com®
Wow!
With more Americans out of work and worried about the security of their jobs in addition to their health, home buyer interest has fallen sharply, according to 90% of Realtors® surveyed in the National Association of Realtors® Flash Survey: Economic Pulse.
About 6,000 real estate professionals participated in the survey, which was conducted from April 5 to April 6. Roughly 45% of respondents said buyer interest had plunged by more than half. Just 2% said they had seen an increase in eager buyers.
Source: This Is How the Coronavirus Crisis Is Ravaging the U.S. Housing Market | realtor.com®
With the coronavirus pandemic bringing the U.S., and much of the world, to a screeching halt, only just over half of Americans think it’s still a good time to sell a home.
Only 52% of homeowners believe it’s still an opportune moment to put their place on the market—a steep month-over-month net decrease of 29 percentage points in March, according to Fannie Mae’s monthly Home Purchase Sentiment Index. The index measures buyer and seller attitudes about the housing market.
Meanwhile, the net share of Americans who think it’s a good time to buy a home, 56%, is down 7 percentage points from February to March.
“This is the tip of the iceberg,” says Javier Vivas, realtor.com®’s director of economic research. “We have yet to see the full extent of the impact of the virus on housing.”
Source: Why Home Sellers Are Losing Hope in the Housing Market | realtor.com®
We’re not seeing a huge slowdown in either pending sales, or closed sales, however anecdotally the Title Companies are seeing a slowdown, and their offices are closed to the public with many working from home. As long as the County can record deeds, we’ll probably muddle along just fine – Ben
It’s been a busy time here at the ranch. Not surprisingly, everyone who has been on the fence about buying land feels more motivated. I have clients who would love to come to their property and get away from the madness of the city, but they are locked down in Socal, and can’t leave. I believe that we’ll have a big uptick once the lockdown is lifted.
Some days, I feel a little depressed about it all. The anxiety of not knowing the future is disconcerting, and I feel a bit of unease in every waking moment.
Thankfully, I have our garden. Though it probably wouldn’t be enough to keep us from being a bit leaner later on, it’s relaxing, and I always leave the phone up at the house so as to have a brief moment of calm in the flurry. Having 40 acres means I don’t have to sit in the house, and that helps I think.
I’m also thankful of my career as a land broker. I have helped many people to move to this beautiful area. The solar off grid life is not the easiest, but there are many rewards that make the lack of convenience worth it.
Real estate sales are not easy. I’m reminded of the old adage that we in real estate just work half days, you know, 12 hours a day. It’s true!
For the buyers today, my job is just to know what’s best out there for the money. Stagecoach Trails being over 130,000 acres offers a variety of terrains and locations. Zeroing in on what the needs of the buyer are long term seems to be the most important thing.
Educating buyers on costs to do a well, septic, solar etc. may have prevented some financial mishaps (and cost a few sales.) Truth is that it really does cost more than you realize to get it all set up. If I can keep folks grounded in reality as to what it takes to live off grid, I feel it’s best for all of us in the long run.
For sellers the key is pricing. What one wants is not always what the market will bear. We’d all have loved to sold any stock investments in February, ah but it’s too late.
We have an abundance of inventory, but for the first time since the market started dropping in earnest in 2009, we are seeing some slight appreciation upward. There are fewer and fewer “bargains.” Buyers take note!
To all of you reading, please leave a comment or two. Thanks for stopping by! -Ben
My how the year has changed from what I had expected in early January.
We were first aware of the Coronavirus in late January, and although it was alarming even at the early stages, life pretty much went on in the same way. Sales were brisk, and the New Year appeared to be very bright indeed with residential sales soaring in the tri-city area , and even Yucca seeing a good revival.
We were in like a lion at the beginning of March, but now an ominous quiet has appeared with residential showings dropping off during the massive lock-down as many potential buyers come from nearby California.
Yesterday, two cases were confirmed in Mohave County, breaking our streak of zero, and popping our comfort bubble here. We have friends in the medical community, and we’re worried as well for their safety.
Land interest has happily continued, and while we won’t show anyone in our own vehicle now, many buyers opt to go out on their own anyway. We’re happy to have them follow us if they prefer a live agent. I’ve been making the rounds to see that corners are marked, and everything is fairly easy to find. We’re still getting calls and emails every day.
It is comforting to live on 40 acres. We feel somewhat removed from the craziness in the cities. Having our own power source (solar) and our own well/septic, as well as amply prepared soil for a garden is a decidedly good thing when sheltering in place.
We’ve always been modestly prepared, and we were picking up a few things weeks ago before all of the panic buying began. Sadly, I didn’t manage to get my hands on masks, but we did have a couple on hand.
We’ve managed to keep our human contact to a minimum, but have relented to a weekly trip to town for mail, groceries, and garden supplies. I have a vehicle in town that has been repaired, and I will have to go in with someone to reclaim and return it here over the weekend. It may be the last trip for a while. Wash your hands!
