Our real estate market rebounded in a big way during April.

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According to research published by Zillow on April 22, they’re seeing a rise in web traffic to go along with growing consumer interest. Zillow’s pageviews fell as much as 19% in mid-March, but since March 11, traffic to listings on the portal have rebounded sharply to levels that are slightly higher than a year ago. Overall, web traffic on Zillow was up 13% year over year for the seven-day period ending on April 13. Client requests through the Zillow Premier Agent program are now higher than they were a year ago as well. 

 

According to Redfin, requests for agent-led video chat tours soared 350% as of April 19 from the same period a month ago. Video chat tours represent about ⅓ of Redfin’s home tour demand. 3D virtual walk-throughs on Redfin have also increased by nearly 300% since the beginning of March.

 

In the meantime, home sellers are staying firm on their prices. Nearly 75% of Realtors reported that their sellers have not lowered their prices to attract buyers during this time, according to a new survey conducted by the National Association of Realtors. This suggests home sellers are avoiding “panic selling” during the COVID-19 pandemic.

 

Additionally, Lawrence Yun, the NAR’s Chief Economist, stated the following on April 24:

  • There’s no oversupply of houses, unlike the situation in 2008
  • Home prices will be held steady; no panic from home sellers
  • As the economy recovers, most people will be able to go back to work
  • Home sale volume in 2020 will be down, but prices will hold steady
  • Mortgage forbearance is helping to prevent foreclosures
  • Real estate remains a great hedge against inflation, especially with interest rates where they are right now
  • Once the economy opens back up, we will have a surge of buyers and sellers

How is real estate adapting to this crisis? Although it has been deemed an essential business by the Department of Homeland Security, Realtors around the country are taking steps to keep themselves and their clients safe during this time. Showings should be done virtually if possible, and open houses remain off the table. If a serious, potential buyer decides that they absolutely must see a home in person, only one agent and two visitors from the same household can be in the home at one time. Realtors will be required to wear gloves and disinfect any door knobs, keys, and locks they touch, and warn clients to touch as few surfaces as possible.

 

In just the last week, mortgage applications have jumped significantly. On April 29, the volume of mortgage applications for purchases jumped 12% compared to the previous week, according to the Mortgage Bankers Association. That’s the highest weekly increase in almost a month. Digital mortgage lender Better.com also reported a 36% increase in year-over-year purchase applications in April. The top state was California, which made up 14% of the month’s total purchasing volume.

 

Another thing to know about mortgages is that some lender guidelines have changed. Buyers should check with lenders again, even if they have already been issued a pre-approval. Jumbo loans of less than 20% are gone and no new loans are being issued for those who have asked for mortgage forbearance.

 

For now, home prices in California are remaining stable despite deep retrenchments in inventory and home sales related to COVID-19. Prices on a per-square-foot basis last week were down by just 3.6% or less in the Bay Area, Southern California, and the Central Valley. A recent survey shows that buyers are expecting significant discounts on pricing, but sellers are more likely to remove their homes from the market than discount their price. Discounting remains stuck at roughly pre-crisis levels.

 

What’s going on in Santa Clara County? Although last month we saw 116 withdrawn listings and 129 canceled listings between March 17 and March 31, during that same stretch in April, we only had 37 withdrawn listings and 54 canceled listings. Combine that with the fact that new listings are up from 370 to 506, and you can see that our market is rebounding, and the panic we saw in March is less present today. The total number of listings that fell through was down as well, from 167 in March to 113 in April.

 

We have 95,051 total single-family homes in Santa Clara County. In April, 25 of them were sold. Only six of those sold for less than the listing price. The other 19 sold well above listing price. For example, the home at 2218 Francis Avenue listed at $1.288 million, received five offers and sold at $1.35 million. This is just one of many examples that show we’re still in a strong seller’s market.

 

In summary, our market remains stable. We have had fewer listings cancel, fewer listings withdrawn, and fewer home sales fall through. Houses are being gradually put on the market in higher numbers, and the good homes are still receiving multiple offers and selling over the listing price.

 

If you have questions for me about anything I discussed in this blog, or other real estate topics, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.