Coronavirus and Real Estate

Coronavirus, COVID-19 or the "Rona" are all words we have heard repeatedly throughout the last weeks / months accompanied by terms like "shelter in place" and "social distancing". What does all of this mean as it pertains to the real estate market can be summed up in one word "CHANGE". That change includes inventory supply, buyer demand, how homes are shown, new disclosures, forbearance and of course new home loans. Although both buyers and sellers have taken a step back from the housing market, home prices have shown minimal response to the Coronavirus thus far as of April 23rd in San Diego. In fact those homes priced $1M and below remain in high demand and if priced appropriately are still receiving multiple offers. The biggest change which has a direct relationship with how the real estate market functions is the overall liquidity in the lending market. Many programs on non-QM loans have completely vanished from the marketplace and overall lending guidelines on all products have tightened up.....especially in the jumbo market of San Diego (loans over $701,500). Money is still readily available for all qualified Buyers as every lending institution sets their own interest rates and has their own set of criteria including: credit score, down payment, reserves and of course employment. As we navigate thru this coronavirus period of time, some people have been debating whether we are experiencing a "suppressed" or "deferred" supply of inventory including "suppressed" or "deferred" buyer demand. We don't have the crystal ball but one thing is for certain and that is we have all had to get comfortable in our homes these last weeks/months which has given new meaning and importance to the word "home". I'm always available to provide insight or answers to all your real estate related questions and of course always welcome the opportunity to reconnect with you all. I hope everyone is safe and healthy during these times.