April 2020
Mortgage Applications to buy a home plummet 24%
The coronavirus appears to be affecting the mortgage market: More borrowers are refinancing to save money on monthly payments, while potential homebuyers are backing away fast.
Driven entirely by refinancing, total mortgage application volume increased 15.3% the first week in April week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 67% higher than one year ago, when interest rates were higher.
Mortgage applications to purchase a home fell 11% last week and were 24% lower than a year ago. As a real estate agent, I am seeing a sharp drop in buyer interest and open houses and model homes due to the shelter in place ordinance. Some potential buyers are doing virtual tours, but the demand is not even close to normal spring volume.
Crucial Coronavirus Cleaning Tips
Probably one of the most disturbing details to recently emerge about COVID-19 is just how long the virus can live on surfaces. Another scary thought? The fact that an estimated 42% of us aren't even cleaning those surfaces properly.
This is all particularly unsettling considering that highly trafficked places like grocery stores and gas stations are teeming with germs, and now you run the danger of bringing it all home with you, on your clothing, your bags, your phone, and more.
We wanted to find out just how long the virus can survive on various household surfaces, and how to stop it from spreading throughout your home. So we called on several seasoned experts for advice. Here's everything you need to know about keeping your home virus-free at the height of the outbreak.
Read the entire article here
Will your lender let you miss a few mortgage payments?
Homeowners whose finances have been battered by coronavirus might want to think again before postponing their mortgage payments. Congress has offered some relief to mortgage borrowers who are experiencing financial strain from the coronavirus pandemic, which has left a flood of layoffs in its wake.
The Coronavirus Aid, Relief, and Economic Security Act-or CARES Act-has a provision that would allow affected homeowners to apply for up to a 12-month reprieve on some mortgages. States have also rolled out their own relief measures for borrowers whose mortgages aren't backed by the federal government.
Borrowers aren't being forgiven. Instead, the state and federal COVID-19 measures call for forbearance-the postponement or reduction of the loan payment due. This covers people who have federally backed mortgages, including loans owned by Fannie Mae or Freddie Mac.
Document every interaction you have with your mortgage servicer and start with these three questions before you sign up for forbearance.
1. What's your eligibility?
2. What happens to your payments after the reprieve?
3. What does this mean for property taxes and insurance?
Read the entire article here
Some things to consider in light of recent events
1. The buying and selling landscape has changed
Every real estate company is putting preventative procedures in place, most are even closed, in addition to the countywide restrictions that are now in place for Realtors.
2. The transaction will likely be socially distanced
The National Association of Realtor (NAR) guidelines have permitted agents to ask buyers and prospects about travel history and potential exposure to the coronavirus. Open house events have largely been prohibited due to shelter-in-place orders.
3. Now is not the time to try to take advantage
Some buyers might be tempted to throw multiple low-ball offers at sellers to see what will stick. Buyers might feel as if they are entitled to a deal during these unusual circumstances. STOP. While sellers certainly can negotiate, trying to rub salt in the wound of what's already a trying time will not be appreciated or celebrated. Don't approach an offer with the intention of playing to a seller's vulnerabilities or an overblown sense of despair in the market. Everyone is in unchartered territory, and this is an uncertain time on many levels. No one is exempt. Consider making a fair offer, if at all.
4. Delays will inevitably happen
Right now, life isn't going according to anyone's plan. Major life events are being postponed or cancelled. Sadly, even celebrations of life due to a loved one's passing can't be held. The same is likely for a real estate transaction. Whether a buyer or a seller, please understand that there may be delays with all facets of the transaction process as human interaction is compromised over the next few weeks or months. We can plan accordingly for inspections, appraisals, loan processing and underwriting, as well as issuing the clear to close and getting the package from the lender to the title company.
5. Adjust your expectations
We're living in unpredictable times. No one has all the answers-and that includes real estate agents. While I am doing my best to obtain information and updates from local, state and national Realtor associations, along with national, state and local officials, this situation is rapidly changing. What happens today might be drastically different tomorrow.
6. Accept that you might not have all the answers
This one is tough. It can be easy to panic at the thought of the unknown. Will things get better after May 3rd when many of those "temporary" closures and lockdowns are supposed to end? Those are arbitrary dates and deadlines, and we don't know if they will be extended. Real estate is a business based on results and outcomes. I can't predict the future. I can only educate sellers and buyers on what is happening when the time comes. Achieving normal market results might not be possible now or in the next few months, and everything is up for grabs. Whether you're buying or selling, it's important to stay flexible and focus on the process instead of the outcome.
While things might appear to be doom and gloom right now, it could be a dramatically different and positive picture a few weeks from now. No matter what, it's important to remember that everyone has to live somewhere. At the end of the day, our home is the one sacred place where we can work through our deepest fears and challenges, rejoice in the happiest of times and simply relax and be who we are without fear of judgement or criticism.
Quarterly Comparisons for Bay Area, Central Coast & Santa Cruz
Comments: Total sales declined in Santa Cruz County, stayed the same in Monterey County and increased in Santa Clara. All three counties experienced an increase in the Median Price. Days on the market decreased substantially in most areas possibly due to the fewer new listings. And the list to sale price ratio increased significantly in Santa Clara County, stayed the same in Monterey County and rose a bit in Santa Cruz County yet still under 100%.Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.
