The latest Economic Pulse Flash Survey from the National Association of REALTORS® shows the trends haven’t changed drastically from the week before. Sellers, for example, aren’t budging on price. More than three in four REALTORS® are working with sellers right now. Of those, 76 percent said their clients have not reduced listing prices in order to attract buyers—an increase from last week’s 74 percent.
REALTORS® continue to lean on technology for help during these times; however, the focus has shifted to video. Thirty percent of surveyed REALTORS® have been able to complete nearly all transaction processes while practicing social distancing. For future clients, the most used tech tools are live videos (53 percent), e-closing technology (46 percent), messaging apps (41 percent), Webex/Zoom (32 percent), virtual tours (27 percent), social media (18 percent) and e-signature programs (8 percent). There is still a significant group, however, 41 percent, who say some transaction aspects still require person-to-person interactions, with safety precaution being taken.
The rental picture has changed slightly. Sixty-one percent of landlords (same as last week) and 42 percent of property managers (an increase from 37 percent) report no issues in collecting rents. Property managers, however, are showing there is a little less wiggle room now. Thirty-six percent are being accommodating about delayed payments, a decrease from last week’s 47 percent.
Sellers and buyers stand pretty much at the same level, with slight improvements. The decline in buyer interest is beginning to flatten, now cited by 85 percent of members compared to last week’s 87 percent. Thirty-five percent (down from 40 percent) said the interest has declined by more than 50 percent. But this is most likely temporary—43 percent said buyers are delaying the process for just a couple of months. Fifty-one percent of members said their seller clients are also postponing their real estate needs for a couple of months.
“Nearly 70 percent of Americans have secure employment and those interested in purchasing homes are looking at the enticing mortgage rates,” said NAR Chief Economist Lawrence Yun. “One in five potential buyers have dropped out of the market due to job loss concerns, hopes are the massive financial stimulus package can help replace a good portion of lost income until the economy steadily reopens. More home sellers are needed to relieve the acute inventory shortage.”
Of those surveyed, 75 percent are working in a local market with presumed or confirmed cases of COVID-19.
For more information, please visit www.nar.realtor.
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas at email@example.com.