How do you sell a home in the epicenter of a pandemic?
The outbreak of coronavirus has left many in the real estate industry asking the key question as the normally robust spring market kicks into gear.
Low interest rates, a decline in new home listings and sellers’ willingness to come down on price have allowed the market to pick up some steam in recent months.
But concerns over coronavirus are causing people to limit their exposure to large gatherings and strangers, such as open houses, even amid favorable market conditions for buyers.
Real estate experts face unprecedented challenges as New York state declared a state of emergency last week and the National Guard deployed to a one-mile containment area in New Rochelle due to coronavirus.
Yet the experts so far maintain that it’s too early to tell how these events will affect people’s ability to sell their homes in the spring market.
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Those interviewed by The Journal News/lohud say the outbreak came to Westchester County during a bull run for the single-family real estate market. And while it is too soon to tell the true effect of the virus, sellers and buyers are already taking safety measures.
“When consumers process uncertainty — just like they did with the [state and local tax deduction cap] — is (when) we see a slowdown in activity,” said Jonathan Miller, of real estate appraisal firm Miller Samuel. “The problem is that you have consumers that are motivated by the drop in rates and then you have others that want to wait until they’re comfortable. So it’s not a sure thing.
“What we’re seeing in the city … is a slowdown in inventory coming to the market,” he said.
As a result of coronavirus, Miller said the local real estate market may see a slowdown similar to 2017 when the Tax Cuts and Jobs Act limited state and local tax deductions to $10,000.
But the CEO of Miller Samuel said coronavirus and the low interest rates may prove beneficial to buyers this year.
Sellers in Westchester, he said, have had to come down on pricing in recent years to meet the new market expectations. And the potential reduction in inventory due to the virus, coupled with favorable interest rates, may push sellers already in the market to consider further discounts.
Leah Caro of Bronxville-based brokerage firm Park Sterling Realty said new listings have slowed in the county, but the coronavirus frenzy has been offset by an early start to the spring market this year.
“Normally, we see the uptick in the listing inventory beginning in February but really peaking in March and April, which we still may see,” Caro told The Journal News/lohud. “But people weren’t waiting in the wings to bring their properties on.
“We have had one seller who was scheduled to bring her home onto the market next week push that back because of her concern about corona,” Caro added. “She’s planning to sell, but she just wants a couple more weeks to see where this goes because she doesn’t love the idea of having multiple strangers in her property. And she does fit one of the demographics of being more vulnerable.”
New Rochelle a different tale
The single-family market in New Rochelle tells a different story.
Michele Silverman Bedell of Silversons Realty said she’s hopeful the containment zone will not be active after March 25.
Silverman, the seller’s agent for a 2,300-square-foot home within the containment zone, says her listing at 15 Ranger Place is still drawing potential buyers.
However, concerns over coronavirus have led her to cancel an open house for the property this Sunday.
According to the Hudson Gateway Association of Realtors, five homes within the containment zone are still planning to host open houses this weekend.
Kate Mercado, a resident of New Rochelle and a broker for Julia B. Fee Sotheby’s International Realty, said the city’s single-family market is experiencing a drop in casual buyers while seasoned buyers see an opportunity.
“We’re seeing people who know that they want to be in New Rochelle,” she said. “It could be a great time for them to sort of take advantage of other people who may not be coming out to explore right now if they’re nervous about, you know, the virus being sort of centered near us.”
The New Rochelle market experienced a drop in median sales price, new listings and closed sales in 2019. The market saw a reduction in new listings of 12.5% over 2018, while median sales price decreased 1.5% to $675,000, according to HGAR.
The association of realtors reported condominiums and co-ops in New Rochelle saw a growth in median sales price by 21.7% and 4.6%, respectively. The median sales price for condominiums was $522,000 while the median sales price for co-ops in the city was $160,000.
Tailwinds for mortgage banking
The Federal Reserve’s cut of interest rates last week is expected to prop up the local real estate market despite concerns of coronavirus. Experts interviewed by The Journal News/lohud said the cut to interest rates will help drive some traffic even while sellers and buyers are wary of open houses.
According to the Mortgage Bankers Association, mortgage applications increased to the highest level since April 2009 last week.
The association said it expects the cut in interest rates to increase overall mortgage and refinances this year to $2.61 trillion — an increase of 20.3% over total originations in 2019.
“Market uncertainty around the coronavirus led to a considerable drop in U.S. Treasury rates last week, causing the 30-year fixed rate to fall and match its December 2012 survey low of 3.47%,” Joel Kan, MBA’s VP of Economic and Industry Forecasting said. “Prospective buyers continue to be encouraged by improving housing inventory levels in some markets and very low rates.”
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
