How has COVID-19 impacted Santa Barbara real estate?
Are you or someone you know interested in buying or selling a property? Curious about how things have changed in real estate during the COVID-19 global pandemic or if now is a good time? Read on for some helpful information.
Is it safe?
Like you, real estate agents have adapted with the pandemic to ensure everything is operating in a safe way. Real Estate was deemed an essential business several weeks into the pandemic. While essential, we are required to conduct the majority of our business virtually. Luckily many services in real estate can be handled this way: open houses, listing presentations, video tours, market reports, and advertising. Complying with phased reopening orders, our office opened on June 1st with many safeguards in place for client and agent protection.
If curious, the laws for each brokerage and associated agents to adopt:
- Each brokerage to implement “Best Practices Guidelines and Prevention Plan (BPPP)”.
- Any person wishing to visit a property for any reason must sign a “PEAD V” form. PEAD stands for Coronavirus Property Entry Advisory and Declaration. Seller/occupants of a property must sign “PEAD S” before anyone can tour their property. The PEAD form covers risks of exposure, the stay at home order, real estate as an essential service, representation and agreement, and assumption of risk.
- Sellers must agree to have Posted Rules of Entry at property. Buyers, sellers, agents, contractors, inspectors and all other entrants to a property must wear a face covering and practice social distancing for showings. Upon entry, hands must be washed and disinfected before entry and no surfaces to be touched. The listing agent is required to provide hand sanitizer, wipes and masks, as well as to ensure property has been disinfected prior to showings.
- Showings are limited to one buying party per showing.
These guidelines are in place to keep everyone safe when visiting a property. In addition to these regulations, there are other forms and policies in place. If you are an interested buyer, you should begin the prequalification process with your lender prior to scheduling showings – I can help. I am seeing that most sellers will not allow showings without proper proof of prequalification to verify proof of funds. Additionally, most properties are receiving multiple offers, many of which are selling very quickly. This is a time where if you want something, you should be prepared to make a quick move to write an offer. My successful clients typically have a turnaround time of a few days, or less. But don’t worry, regardless of if you a buyer or seller our market is dynamic.
Here are my quick highlights – for the full market report for June in Santa Barbara visit here (iOkncl. April, May, and June):
- June 2020 ytd: 725 Sales (-24% change from 2019), 531 single family residence (-16% change from 2019), and 194 condominium sales (-39% from 2019).
- June’s market statistics demonstrate a drop in both sales and the number of homes listed for sale from the previous year.
- There is a silver lining… the average price of property has remained stable for 3 years despite the pandemic – good news for SELLERS. If you have a property you want to list, now is a good time. Inventory is low, and buyers are out there.
- BUYERS: Finance and lending experts expect low interest rates available for buyers to remain low for the foreseeable future. In April 2020, the 30-year fixed mortgage rate fell to a record low of 3.3% (according to NAR). Please contact a lender for further information regarding rates. If you need suggestions of reputable lenders, please email me.
- Good news for buyers: with many sellers who had pulled their properties, there could be a bump in inventory coming soon as things continue to open up and people feel more comfortable. Want to see what is currently on the market or coming soon? Call for a free non-binding consultation.
I hope this article was helpful. If you are interested in receiving monthly market report updates please visit my website and use the contact me form to sign up, or send me an email to opt in! Lastly, please pass along to friends that may be interested in this information or service.
Brought to you courtesy of Simone Shomaker, Realtor.