As we navigate these uncertain times together we, the Clements Family, have never been so proud to live and work in the community of Coronado! While we have all been impacted personally and professionally over the last month we have witnessed our community band together. Restaurants are receiving business from to-go orders, morning coffee is being sold, and many people are buying gift cards and shopping online to support our local businesses. Keep it up! While we will undoubtedly see economic impacts of the Covid-19 in our town, we will remain strong and continue to support each other as we get through this together! We encourage you all to stay positive by making the most of your time at home with family, catch up on your home projects, home exercise and most importantly continue to support our Amazing Coronado Community in anyway you can. We are all going to get through this in time.
How the Real Estate Industry Has Adapted To CoronaVirus?
In 2020 Technology is allowing business to continue. As all industries and businesses we are adapting daily and there is no playbook on how to navigate these uncertain times. The number 1 priority as a family and a business is to follow the guidelines established from the our local, state, and federal governments. We are all obligated to help do our part to flatten the curve and help us get past these difficult times. We have received incredible support from Berkshire Hathaway and will continue to evolve and adapt as a corporate company and local business to support our clients! Here is what you should know about the Real Estate industry and how we are operating day to day.
Real Estate Brokers and Realtors are not considered essential and therefore are prohibited from showing property or meeting with clients in person. We are using 3D Tours and property websites, FaceTime and Zoom call virtual showings, or opening properties and allowing buyers to walk through on their own! We have seen escrows continue, new properties come on the market, houses go under contract, and new deals come together all under these circumstances. The industry has slowed as we all adapted to our current situation but as we have all begun to get settled in the current realty of business we are continuing on.
Housing is always in demand in San Diego, especially in Coronado and some people do not have the luxury of waiting to purchase or are still planning to sell this Spring and Summer. We have been given incredible guidance from Berkshire Hathaway on daily conference calls and our virtual meetings are evolving by the hour to stay current with restrictions allowing us to create new systems that will enable our business to continue.
Escrow Companies are deemed an essential service and are operating as normal from home offices. Digital signatures, Zoom Meeting appointments, mobile notaries, and emails have allowed them to continue working.
Lenders are also deemed an essential service and have continued operating as normal from home offices. Due to low interest rates over the last 3 weeks the industry has shifted to manage the volume of new home purchases and refinances. We have seen a bottle neck due to the volume of business and now interest rates have begun to rise. Timeframes are being extended to accommodate extra time needed to get loans done and 45 days might be the new 30 day escrow. ***While the industry has continued to operate some important aspects of lending have changed. Jumbo loans have been effected due to investors slowing down on loans they are willing to purchase. Appraisers are having to adapt on how to access a property and in some price ranges have been allowed to resort to drive by appraisals only.***
Title Companies are also deemed an essential service and have continued operating as normal from home offices. Working in partnership with local county recorders offices deeds are being recorded digitally in most places. When needed Title Reps are having conference calls and zoom meetings to work through any issues that arise during a real estate transaction and have been successful in keeping transactions on track to close escrow and record.
Over the last 6 days in Coronado (92118) we have seen:
– 4 (plus our two coming on which makes 6) new homes come on the market
– 1 property went into escrow
– 8 properties close escrow
– 4 properties withdrawn
The Clements Group opinion – the biggest outlier for all businesses is uncertainty. Currently the majority of business in the real estate industry is existing home sales and listings staying the course and new business has continued but at a much slower pace. Currently everyone is operating under the mindset of a 14 – 30 day shutdown of business, allowing many people to sit and hold tight until our day to day lives return to normal. However, as we begin to get updates from our state and local governments and we all find our “proposed new normal” we believe strongly that people will begin to move forward with real estate needs and plans. Just 4 weeks ago the real estate market across the nation was the strongest in history and home sales were at an all time high. While we will undoubtedly see economic repercussions that will effect all markets, record low mortgage interest rates along with extremely low inventory-and a demand for Coronado will be the contributing factors to help lead the residential real estate market back to the normal levels.
If you or your family have any questions on the real estate market and how to accomplish your goals during these uncertain times please do not hesitate to contact us! We are here to help and are available via phone, text, FaceTime, email, Skype, WhatsApp or Zoom!