How to Buy or Sell a House During
The Shelter In Place in the Bay Area
What you Need To Know to
Navigate Successfully the COVID-19 Legislation
Realtors now have new tools at their disposal to keep working despite the Shelter-in-Place in California. As a result, over the past 2-3 weeks there has been a significant increase in the number of closed transactions.
For your convenience, you will find below a recap of the new ways used by the real estate industry to perform real estate activities as well as an update on the current state of the real estate market in Santa Clara County.
New ways of performing real estate activities
Showings: Up until now, only vacant homes were allowed to be shown. Effective May 4th, occupied properties can also be shown with certain safety guidelines. Contact me for details.
Coronavirus Clauses: National Association of Realtors now has COVID-19 disclosures and clauses to protect sellers and buyers in this environment. These include clauses to shield the parties in case of any delays, extensions on deadlines, and right of cancellation.
Drive-by Appraisals: Lenders require an appraisal to justify the selling price. An appraiser uses market research and other relevant data as well as in-person inspection of the home to arrive at their appraised value. Lenders are now allowing appraisers to use a drive- by inspection and exterior photos, waiving the need for inspection of the interior of the home.
Virtual Closings: More counties and title companies are now allowing electronic signature, and closings are now getting completed via online notary and electronic deed filings.
Current State of Santa Clara County Real Estate Market
The shelter-in-place caused steep drops in activity across the board in what is typically the busiest selling season of the year. Activity has been slowly picking up since bottoming out in late March/early April, and will presumably continue to do so with the easing of both shelter-in-place and property-showing rules.
So far, median house sale prices is up against all odds. Please keep in mind that some of the sales behind the April median sales price still reflects offers accepted prior to shelter in place.
Mortgage rates have stabilized at very low levels over the last few weeks as home buyer demand slowly improves. Although purchase applications reached a new low in mid-April, the current purchase demand is only down 10% from one year ago.
If you have any questions about any of the above-mentioned topics, I would be happy to chat and share the latest developments which occur almost on a daily basis.