Will COVID-19 spur a migration from dense cities?

Realtors and demographers say this is an acceleration of a trend already taking place

When state governments ordered residents to stay at home more than a month ago, it triggered a wave of temporary migration.

“We immediately saw a pickup in our rental market, especially a pickup in our high-end market,” with some renting sight unseen, said Tammy Felenstein, executive director of sales for Halstead Real Estate in Stamford, Conn., close to the New York state border.

Some in the Northeast flocked to Florida. Others, wary of germs easily spreading in high-rise building elevators and through dense city life, rented homes in the suburbs. 

Still others, particularly young single adults, packed bags and moved back in with their parents. And even for those staying in place – whether in their condo, apartment or house – the isolation made the walls feel closer.

As states plan to reopen their economies, what changes COVID-19 will have on the housing market remain to be seen. Demographers and Realtors alike predict this is a tipping point for people who’ve already been dreaming of backyards, private pools and more space. 

It will accelerate trends that were already happening, they said, and bring a new level of consideration – whether people upgrade their apartments and condos for larger units or move out of dense cities altogether.

Some Colorado counties allow in-person showings starting this week

Most of the U.S. has been under stay-at-home orders for over a month now. This week, states across the country will slowly open up.

On Sunday, Colorado Gov. Jared Polis issued Executive Orders on Safer-at-Home, which means certain businesses and retailers will be re-opening in phases.

“As we take steps to return Coloradans to work, we must continue to practice social distancing at a high level and implement other measures, such as limiting our social interactions, taking extra precautions for Vulnerable Individuals and wearing non-medical masks while in public, to facilitate a step towards reopening the economy while protecting public health,” the Executive Order said.

Starting Monday, in-person real estate showings will pick back up in Colorado. However, the state will still hold off on open houses. Other retailers, businesses and salons will also be open, but under strict social distancing guidelines.

While there is a statewide order that allows for showings in the state, counties have the choice to extend stay-at-home orders, and many of them did, through May 8.

Adams, Arapahoe, Boulder, Broomfield, Denver and Jefferson Counties all extended their stay-at-home orders last week, while Douglas County did not.

Prior to Monday, Denver-area Realtor Alison Zuckert told HousingWire that she was only able to show homes to potential homebuyers once a contract was signed, and then a private showing could happen.

But Zuckert said there could be no more than three people at a showing, potentially limiting the Realtor from being able to show a home’s full potential.

However, Zuckert was ok with the limitations.

“There are so many people who are asymptomatic with this particular virus, of course there are concerns,” Zuckert said. “If you are sick and you don’t know you’re sick, then you go into a house and then something happens and it’s a liability. I think it’s definitely a time for all of us to pause and really make sure that our clients’ best interest is always at the forefront.”

RE/MAX Realtor and Colorado Association of Realtors Spokesperson, Kelly Moye, told HousingWire that each county has different rules than the state, making it difficult to coordinate showing homes.

In the last month, she showed homes via FaceTime.

“In terms of showing houses in the last month, the only way we’ve been able to do it is by FaceTime, if the seller was willing to FaceTime with us, and by taking virtual tours and driving by so we weren’t able to do it in person,” Moye said. 

I did have a few clients who bought homes like that, and went under contract based on FaceTime showings.”

Since stay-at-home orders began, real estate agents have been creatively using video to show their homes and continue working, while other brokers have been conducting virtual, 3D and even livestream or self-guided home tours.

“Even though this stay at home order is changing for certain places today, that doesn’t mean that all sellers are feeling comfortable with people coming in,” Moye said. 

“So, you have to look at it from their perspective. Some of my clients were not pleased that showings could happen today, because they just don’t feel safe yet.”

The Executive Order will expire thirty days after April 27, 2020, unless extended further by Executive Order.

Chinese inquiries in U.S. property up 48%

Despite increasingly frayed relations between the two trans-Pacific superpowers, Chinese interest in U.S. property continued to remain strong during the first quarter of this year.

However, more Chinese buyers in search of global real estate spent the first quarter looking to Greece and Germany rather than the U.S.

According to a new survey released by Juwai IQI, a Hong Kong-based real estate sales and media company, Chinese inquiries into U.S. property during the first quarter grew 48% from one year earlier.

Tensions between Beijing and Washington had relatively little impact on Chinese buyers, with Juwai IQI pointing to the possible devaluation of the Chinese currency and that nation’s pandemic-weakened economy as the impetus for those seek out a secure investment environment outside of China.

“The U.S. is the classic safe market, where buyers can protect their money from international turbulence or adverse events at home,” said Juwai IQI Executive Chairman Georg Chmiel. “With financing extremely cheap, Chinese buyers who are in a position to tap U.S. mortgage markets can leverage their purchase at a very small cost. 

Cheap mortgages also give Chinese buyers confidence that they can reap gains as prices increase in the long term.”

Chmiel added that “extremely low financing costs in the U.S. reduce capital requirements for Chinese buyers. This makes it easier to accumulate necessary funds for the purchase and management of real estate, despite Beijing’s strict capital export controls.”

Summit County under amended public health order starting on Monday

Summit County will be under an amended public health order starting Monday, April 27, that will ease some of the restrictions put in place to combat COVID-19. 

Public Health Director Amy Wineland signed the amended public health order Saturday. According to a Frequently Asked Questions sheet accompanying the order, the goal of the new safer at home phase is to maintain 60-65% of the social distancing efforts already being practiced by the state.

At two virtual meetings on Wednesday and Thursday, county commissioners thoroughly debated Wineland’s recommendations on everything from nonessential workplaces returning at 50% capacity to restrictions on second homeowners returning to the county. 

One of the more restrictive parts of the amended order prohibits short term lodging, including short term rentals, from operating through May 31.  

“We are the ultimate tourist-based economy, so bringing in people from all around the state, the country, the world is what our economy thrives on,” County Commissioner Karn Stiegelmeier said. “We cannot do that safely.” 

The county’s dedication to preventing the spread by discouraging visitors from coming to the county falls in line with Polis’ recommendations. 

At a virtual news conference Friday afternoon, Colorado Gov. Jared Polis urged people to avoid recreating far from their homes. He suggested people stay within 10 miles of their houses to prevent crowds from gathering and the virus from spreading throughout the state. 

“Areas that are just turning the corner and getting control of infections do not need a whole new round of infections from people from Colorado Springs or Denver who are going to those areas,” he said. 

Both Stiegelmeier and county commissioner Elisabeth Lawrence hope the amended order will help people cope with social distancing practices and improve mental wellness. 

“It gives everyone just a small amount of freedom while following the rules,” Lawrence said. “I think that will be very helpful for everyone’s mental health.”

The amended order also allows retail businesses to provide products through the mail, home delivery and curbside pickups. The county will also be providing an online form for businesses to submit social distancing protocols that would allow for people to be safely inside a physical building when restrictions are loosened further. 

Those wishing to return to work may be able to do so, with limited opportunity. Starting Monday, May 4, non-essential workplaces can have up to 50% of normal staffing. However, employers are strongly encouraged to continue telecommuting, and workers are expected to maintain a 6-foot distance while at work. 

In his Friday conference, Polis reminded people that the safer at home order does not mean restrictions are completely lifted. Everyone is still expected to remain at home as much as possible and wear masks when going out in public. 

The following are other restrictions included in the county’s amended order:

• Sick individuals, people with underlying health conditions and people over 65 must stay at home as much as possible. 
• Gatherings of 10 or more people continue to be prohibited and people are encouraged to remain 6 feet from others outside of their immediate household.
• Real estate agents can hold showings through appointments, but open houses are still prohibited.
• Child care services can start opening on May 11 to serve members of the local workforce with strict precautions to limit the transmission of the virus. 
• Elective medical and dental procedures are allowed.
• Restaurants and bars can be open for take-out and delivery, but dine-in services continue to be prohibited. 
• K-12 schools will remain closed throughout the school year.
• Car rentals and car sales are allowed. However, sales must take place by appointment to prevent gatherings of more than 10 people at dealerships. 
• The Summit Stage main line routes will resume with fewer than 10 passengers at a time. Paratransit services will continue for those who require transportation to work and essential services. Some seats will be roped off to maintain social distancing and all riders will be expected to wear face coverings while on busses. 
• Places of worship can open but there must be 6 feet distance between congregants and fewer than 10 people at gatherings. The county is encouraging remote and online services to continue. 
• Trailhead parking will be limited.
• All construction activities have to adhere to the Summit County Building Department COVID-19 policies and procedures. 

This phase of social distancing will continue for the foreseeable future. The county will have to see a decrease in positive cases for 14 days before it can fully open up, Stiegelmeier said.

Lawrence and Stiegelmeier both pointed out that the county will not get to the point to fully reopen unless everyone follows the rules and continues to practice social distancing. 

“I think it’s pretty clear, this is not a reopening, just lessening some restrictions,” Stiegelmeier said.

Revised-Amended-and-Restated-Safer-at-Home-PHO-Signed-Apr-25-2020Download

Nearly 3 in 4 Realtors® This Week Report Sellers Haven’t Lowered Listing Prices to Attract Buyers, Suggesting Calmness and No Panic Selling by Homeowners

Nearly 3 in 4 Realtors® currently working with sellers this week – 74% – reported their clients haven’t reduced listing prices to attract buyers, according to a new survey from the National Association of Realtors®. This suggests interested home sellers are remaining calm and avoiding panic selling during the uncertain economic environment brought about by the coronavirus pandemic.

“Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months,” said NAR Chief Economist Lawrence Yun. “The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”

NAR’s latest Economic Pulse Flash Survey – conducted April 19-20, 2020 – asked members how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include:

• More than a quarter of Realtors® – 27% – said they were able to complete nearly all aspects of transactions while respecting social distancing. The most common technology tools used to communicate with clients are e-signatures, social media, messaging apps and virtual tours.
• Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Forty-seven percent of property managers reported being able to accommodate tenants who cannot pay rent, a 6% increase from a week ago. Nearly a quarter of individual landlords – 24% – said the same, unchanged from last week.

NAR also today released its 2020 Animal House: Pets in the Home Buying and Selling Process report, which analyzes Realtor® recommendations and actions taken by home buyers and sellers to best accommodate their pets and present their homes in the best light. Several highlights include:

• More than 4 in 10 U.S. households – 43% – would be willing to move to better accommodate their pets, demonstrating that this is a priority among consumers.
• Almost 1 in 5 recent home buyers – 18% – said it was very important that their new neighborhood is convenient to a vet or near outdoor space for their pets.
• A majority of Realtors®’ clients – 68% – said a community’s animal policy influenced their decision to rent or buy.

“As households in the U.S. pursue comfort, companionship, and home entertainment, animal shelters were cleared out in many cities,” said Jessica Lautz, NAR vice president of demographics and behavioral insights. “These pet adoptions could lead to future home sales as families seek to accommodate the best living spaces for their four-legged family members.”

View NAR’s 2020 Animal House: Pets in the Home Buying and Selling Process report here:
https://www.nar.realtor/research-and-statistics/research-reports/animal-house-pets-in-the-home-buying-and-selling-process.

View NAR’s Economic Pulse Flash Survey full report here:
https://www.nar.realtor/research-and-statistics/research-reports/nar-flash-survey-economic-pulse.

View NAR’s Weekly Housing Market Monitor here:
https://www.nar.realtor/research-and-statistics/weekly-housing-market-monitor.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

Real estate agents are creatively showing listings amid stay-at-home orders

A view of the living room

With real estate deemed an essential service in many U.S. states, and potential buyers under orders to stay at home, agents are showing properties the only way they can during the COVID-19 pandemic: Virtually.

Fatemah Nickchehi, a San Francisco-based Keller Williams Realtor, already had been making videos to showcase homes on listing websites prior to the COVID-19 pandemic, and told HousingWire it’s all the same when it comes to giving a virtual tour to a prospective buyer now.

It’s a service that’s growing in demand. While most people wouldn’t have considered purchasing a home sight-unseen prior to the epidemic, about 25% of shoppers interviewed in recent weeks said they would buy a home without even stepping foot in it, according to realtor.com.

Nickchehi said she hired a professional videographer from Los Angeles to produce something a cut above what an agent could record with a cell-phone camera while walking through a house. The finished product was worth the extra cost, she said.

I recently did  something similar for my listing at The Chateaux in Breckenridge, Colorado.

Here's a link to the  Interactive virtual tour.  Use your cursor to move left/right and up/down.  Click the blue disks to move from room to room.

https://view.ricohtours.com/2e7199ce-86d4-473c-bd55-d8493df57d4c/

Click the link and let me know what you think.