Things are definitely different these days as we enter into this new era of Real Estate with the Corona Virus Pandemic in full swing throughout the USA. The predictions are dire as the economy has all but shut down. The Models were predicting a 50% drop in Real Estate Sales. So far the drop has only been a 20% drop which points to how strong the Real Estate market was shaping up to be in the first quarter of 2020 before the Virus hit.
Truth is the Malibu Real Estate Market is not all bad. The interest rates on loans are at historic lows and people who are well qualified can get loans. As recently as the beginning of April 2020 there have been several reported sales with many of them sales where financing was a part of the purchase. The fact is the banks are still lending and if you are a qualified borrower there are some great loans out there. If you are a borrower on the margin needing a stated income loan that may be more difficult and those are the ones that are hard to find. It is important to know that there is a lot of money out there and loans are still available to those that qualify. With interest rates at 3.5% fixed rate and an adjustable sometimes under 2.75% it is almost too good to turn down.
Last week I closed a sale on Malibu road for a property listed at $3,200,000 and that buyer obtained financing. Additionally, last week I put another of my listings into escrow. There are sales out there and showing requests continue to come in. Real Estate is considered an “Essential Business” by the federal and state governments and therefore we are allowed to conduct business during the” Stay at Home” orders. However, it is anything but normal business activities. I use virtual showings now where we take clients through properties with virtual showings of the property. I hold virtual open houses too on Sundays during the normal open house hours where I am available to answer any questions Buyer’s may have. Finally, in the most surreal way I am still doing actual showings with clients who want to view the property in person. I meet the client at the property maintaining a safe 6 foot or more distance, we both have masks and gloves with wipes in hand, we proceed to view the property. Allowing the proper social distancing guidelines I allow the client to view the property and ask questions. When we are done with the showing I wipe down any areas that might have been affected and lock up as usual. Once leaving the property all showing items are removed and hands are washed using Purell. This is how I was able to get my listing into escrow.
It is important to understand that this COVID 19 crisis is a health crisis not an economic crisis. When this is over the we will bounce back and move forward together as America always has. As the real estate industry has been declared an essential business during these times of Shelter in Place, my team and I have continued to conduct business, taking extra precautions to follow all local, state and federal mandates relating to protocols. We’re busy with virtual showings, virtual open houses, leases, and new listings, so don’t hesitate to reach out, we are here to help. Stay safe and best wishes to everyone.