Local real estate industry reaction to COVID-19 crisis; new video series to help sellers, buyers and homeowners

Realtors, buyers, sellers, and homeowners, in general, are understandably curious about the effect of the COVID-19 pandemic on the local real estate market. Local industry expert Beth Medved Waller (a top-producing associate broker in Warren County) interviewed countless agents about the state of their business and hopes to shed a light on the pulse of the local real estate market from multiple agents and perspectives. “It’s my obligation as well as my honor to inform my community about the state of the real estate industry in light of the current state of our world,” says Waller who’s been a top producing Realtor since 2005.

Watch this video for her general commentary about the local real estate climate amid threats of the virus spreading through the Shenandoah Valley:

Stay tuned for Beth’s video series (launching through Royal Examiner next week) offering tips for people to enhance their “real estate health” while they are stuck indoors to protect their own health. In the seven-part series, she’ll be advising homeowners, buyers (both active home seekers and those thinking of buying soon), sellers (those with active real estate listings and with properties preparing to hit the market this spring) and Realtors (agents already in business as well as people who are considering becoming a licensed practitioner). She’ll share suggestions about what each party can do to make their time at home productive from a real estate perspective. A four-part article is also being published with her timely tips by “Real Estate Agent Magazine.”

A Bright MLS analysis by Waller on 3/25/2020 indicated that Warren County inventory levels are approximately 100 units below 2019 stats with 178 active listings, 6 coming soon, 14 temporarily off the market and 8 withdrawn within the last two weeks. Since Friday the 13th (when COVID precautions tightened), 28 listings went under contract/pending for a total of 110 in the category. Many recent listings posting have been new constructions and vacant homes obviously have extra appeal in today’s market.

”My most active properties are my vacant listings, but I did have a showing this weekend on one of my occupied homes and am expecting an offer. The agent and buyers wore gloves and my seller felt comfortable, although the same seller declined an earlier showing this week when the agent informed me that her buyers had just returned from overseas (and were within the recommended 14-day quarantine).” Beth added, “Showings on my listings have drastically slowed since Friday the 13th, but I’m encouraged by the buyer and agent calls I’ve received since Thursday. I listed a vacant home on Friday and have had 5 showings already, which is less than normal, but much better than I feared. I’ve only ratified one contract in three weeks, but have renewed hope that as we navigate our new ‘normal’ buyer activity will increase. I expect to start seeing virtual showings more and more and anticipate having offers from buyers who haven’t physically toured that will include the ‘sights unseen’ and new ‘COVID-19’ addendums.” Closing delays have already occurred for Waller due to lender slow-downs from appraisal backlogs and government tax transcript delays. How the market will be affected as the virus spreads more heavily through the valley remains to be seen, but “business as usual” is a thing of the past for the foreseeable future.

According to Executive Order 53, all professional service business (including real estate) may remain open as long as an emphasis is placed on honoring the under 10 gathering mandates, teleworking as much as feasible, meeting with clients virtually when possible, avoiding hosting in-person open houses, engaging in social distancing, limiting the numbers of houses buyers tour and embracing enhanced sanitizing practices.

Cindy Greenya, President of the Blue Ridge Association of Realtors, offered a positive outlook for the industry:

“All of us are walking into an unknown time. Realtors and the Association are trying to figure out how to adapt and change. We are still very low on inventory, houses are still selling and our affiliates and members are working on adjusting the way they do business as well. People still need to buy and sell houses, people are still moving. Now is just a time for us to adjust and change, and at some point in the future life will go back to normal, we just don’t know when that will be.” She added that she’s still seeing showings, especially on vacant property, but she has heard from colleagues that slowdowns are happening and deals are falling through. She’s been blessed to date with showing activity but is anxious to see what happens when her many upcoming listings hit the market. So far, she’s encouraging her sellers to not delay and to get on the market as planned since buyers are seeking additional homes inventory and interest rates are at an all-time low. She also emphasizes the importance for real estate professionals to keep in close communication with their clients and to invest time to keep abreast of the FAQs and COVID-19 releases being published by Virginia REALTORS at www.virginiarealtors.org/coronavirus.

Sharon Cales of Remax in Front Royal (a top producing Realtor for three decades and partner with Ken and Donna Evans of frontroyalagents.com) has the following commentary to share with the community:

My biggest concerns are for the welfare of our clients and their families. While our job is to sell real estate we are still obligated by our code of ethics to keep “the best interest of the client” at the forefront. Knowing that there may be a silent killer on the doorstep makes it more difficult than ever before. As an industry, we are being told to disinfect the surfaces, stop hand to face contact and keep washing our hands. My concern is that this is not enough. Some still appear to think this is a hoax or overkill, REALTORs included. Those of us who have friends still recovering know better. Showing vacant properties is a much easier process. While I still have concerns, I can indeed disinfect and do what is suggested by the CDC. However, the necessary items they suggest using are in VERY short supply and in most cases impossible to get. Occupied properties are where my largest concerns lie. There is no way for us to know what the homeowners are doing to protect their environment or what the buyers or sellers may have been exposed to. This is an environment that is an accident looking for a place to happen. We have the ability to either take the virus into an otherwise safe environment or bring it out with us into the world. Not a safe situation for anyone.

While the government has named us essential, it is my belief that the guidelines should be refined. We still need to process existing cases and get buyers and sellers to the closing table while taking the necessary precautions set forth by the CDC. However, it is my opinion that showings should be limited to vacant homes. In the event showings on occupied properties is essential, the buyers and sellers both should agree to sign off on an authorization form stating both parties understand the possible ramifications. I’m sure some brokers might be OK with that. However, this does still not address the possible infection for the REALTOR. Some Brokers and companies have already made statements concerning their policies. Most have not and it’s business almost as usual. Since we are an industry based on commission income and the future of the market is uncertain, many REALTORS are going to be willing to take the risks I’m afraid.

Sharon Cales on Current Buyer/Seller Traffic:

My showings are way down also. I’d say it’s a reduction of 85% or so. I have had a few calls but several canceled after scheduling and hearing the daily news updates. I do have a couple touring this weekend. However, I am only showing vacant properties. The phones are VERY quiet and although I am continuing to touch base with buyers and sellers, the return calls are not coming in. People seem to be very concerned. Last week, nobody knew anybody affected, but now everybody seems to know somebody being tested or positive for the virus. Listings are almost down to nothing also. Sellers don’t seem to know which way to go. I have ratified 3 contracts, but all have been on vacant properties.

Broker/Owner of Main Street Front Royal’s Exit Premier Realty, Jim Clark (theclarkteamrealty.com), who has been thriving as one of the top producers in Warren County in recent years offers encouragement:

The real estate industry is the most resilient industry in the world. We work in an ever-changing landscape in an ever-changing world, and it changes very quickly sometimes. From economic impacts, legislative requirements, dealing with influxes of foreclosures and short sales, etc, etc. We real estate professional weather the storm, time after time after time. Coronavirus is another storm. It’s a big scary storm. But we are adapting. From virtual showings, video conferencing with clients, and we’re even working on e-closing so clients don’t have to sign their settlement docs in person. We will get through this, just like we have every other time… every other storm. We’ll be stronger and better for it. Because we are all in this together. May God bless and protect us all, and God bless America.

Jim Clark on Current Buyer/Seller Traffic:

I’d say we are down 80% from 2 weeks ago in showings for buyers and of listings, showings on my listings have totally died as well. A few here and there. But it’s really come to a total stop. It’s sad. So many people want to buy and want to sell but they can’t.

A March 23rd Virginia REALTORS Press Release States: Going into March 2020, consumer confidence remained high; however, it is likely these consumer confidence measures will fall this spring. Says Virginia REALTORS® Chief Economist Lisa Sturtevant, Ph.D., “Heading into the spring, local housing markets across Virginia were strong, and February was a good month for the market. While the full impact of COVID-19 is not yet certain, strong economic fundamentals in the Commonwealth can help support a quick recovery. We’ll know much more when March housing market data are available in mid-April.”

Contact a Realtor for updates concerning the local market or reach out to Beth Medved Waller at beth@whatmattersw2.com or 540-671-6145. Check out her column on Royal Examiner for future updates and videos pertaining to the market.