We have officially entered week five of Shelter in Place and we are all too aware of the tragedy COVID-19 has caused the world. The sheer scale and rapid pace of this crisis isn’t lost on any of us, not for one second. However, in spite of the human health concerns and economic distress, it’s important to recognize this crisis as an opportunity for growth, creativity and innovation across all aspects of our lives. Only weeks in and we’ve already seen brands and industries pivoting, reinventing the wheel and recalibrating to this new normal with grace, gusto and a strong will for a well-received transformation. The real estate industry is no different and, while none of us can predict exactly how it’s going to turn out, we are certain that the weeks and months we’re spending inside are forever changing the importance of home.

Home has never meant so much to us in so many different ways. Home is now where we live... and work... and eat… and sleep… and exercise… and relax… and stress out… and play. Living rooms have become classrooms and exercise studios and virtual meeting rooms. Kitchens have become restaurants serving breakfast, lunch and dinner every single day and apparently we’re running a 24 hour snack bar that no one warned us about. Some bedrooms have become hospital quarantine rooms where we care for the sick while trying not to get sick ourselves. Home is where we stay to keep safe, and keep our families safe and keep our communities safe. Staying in our homes is literally saving people’s lives; The Bay Area is even being recognized as the national model for fighting the pandemic.

As of March 31st, The Marin County Health Department extended the shelter in place order to May 3rd and updated the list of essential services to include residential real estate. Right now, per Marin County Health Department guidelines states:

Only vacant homes can legally be viewed in person by up to two buyers at a time, under limited circumstances.
Owner/tenant occupied homes are not legally allowed to be viewed in person and only by virtual showing.
Service providers, including photographers, stagers and videographers are only allowed into unoccupied homes to the extent they are essential service providers that enable residential transactions.
Social distancing would be a requirement for all, as with everything, and to the extent these services can be accomplished without anybody else in the home they should be.

As the real estate industry continues to change, we are dedicated to helping our community of homeowners, buyers and sellers safely work through the ongoing coronavirus pandemic. The data below will help keep you updated on market activity. Changing regulations are impacting our strategies to safely, legally and successfully sell homes during this time and we are continuing to guide our clients to succeed in this market while minimizing risk.

If you’re thinking about buying or selling a home in the near future, reach out out and we’ll be happy to help.

April 2020 Market Update

The first thing to remember is that there is a time lag - usually 3 to 6+ weeks - between a new listing coming on market, an offer being negotiated and accepted, and when the transaction actually closes sale. This means that almost all of the sales price data we have, as of the first week of April, still reflects the market BEFORE the shelter-in-place rules went into effect. In virtually all Bay Area counties, March median sales prices were quite strong.

This report will look at the effect of the crisis on supply and demand by reviewing week by week statistics, at sales price trends reflecting the market before the crisis, and longer-term trend data to give context to how the market typically performs at this time of year. Spring is usually the most active selling season and often sees the highest median sales prices of the calendar year, due to both the level of buyer demand and the seasonal surge in the luxury home market (a higher percentage of luxury home sales pulls up the overall median sales price).

The following charts detail the plunge in listing and accepted-offer activity, and the surge in listings being pulled off the market by sellers, over the past 4 weeks. Typically, at this time of year, we would be seeing steady climbs over February numbers. Though the numbers are way down, some listings have still been going into contract and the majority of these homes are trading privately, outside of the public MLS.

The Luxury Market

The luxury market is fiercely seasonal, and typically spring (Q2) sees the peak in annual sales volumes. Higher-price home sales are often more deeply affected by financial-market crises since affluent households tend to have more wealth tied up in the markets, and watch their movements more closely.