A recent National Association of Realtors survey asked realtors if they believed that home buyer interest has declined as a result of the coronavirus outbreak.
According to the results of that survey, about 48 percent said that they've noticed a buyer decrease thanks to concerns related to the virus.
Some realtors have already looked into transitioning to online virtual home tours and open houses, to try and continue working despite social distancing rules that might be in place.
“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” - NAR Chief Economist L. Yun.
Already in the US and elsewhere they are expecting to see a dramatic rise in mortgage delinquencies.
Federal authorities are also looking at helping homeowners with giving them a break on their mortgage payments as well.
The realtors association admits that they think there will be a strong rebound after the quarantine orders are lifted and business starts to open again.
They insist that there are still many homes available on the market. But it comes as no surprise that there might be a great deal of caution in the market with buyers right now. Realtors are also changing their businesses practices aside from virtual options, with implementing more building cleanings, and using hand sanitizer more often, among other changes.
How long the decline lasts is going to be closely connected with the social distancing and curfew rules that are in place, as well as general businesses being closed. Right now for many within the real estate business, things are on pause as they are for many other industries and businesses.
"Uniformly, every realtor in America right now seems to agree on one thing: the industry’s “non-essential” status in many states and cities is crushing the market—exactly when the spring selling season should be opening the flood gates." - P. Taylor
In some cases they are looking to fight back against that non-essential business status and those in the real estate industry have asked the government in some jurisdictions, like Philadelphia, to re-think that decision. They're asking that real estate services be considered life-sustaining because of the shelter products that they provide.
Since online work has been permitted some real estate agents have already pursued that option, but for others they will just close down temporarily until they can get back to business as usual.
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Not to be considered financial advice, posted for information purposes only.