Frequently Asked Questions Regarding Covid-19
25 years ago, this real estate company set out with a mission to always serve our clients at the highest level. Though the world might seem as though it is frozen in place right now, our mission has not changed.
We are available to serve your real estate needs during shelter-in-place and we have changed several ways that we conduct business in order to keep you, your loved ones, and our team safe.
Below are a few answers to common questions we are receiving. We will do our best to keep the answers up to date as things change.
If you have a question for us that is not answered below, please contact us. We are available to you during this time.
Can we still sell real estate while sheltering-in-place?
Yes, we are still working because Real Estate has been deemed essential. That being said, the Keller Williams office is currently closed and our team is adhering to the rules of social distancing as we work from our homes, cars, and office.
We are still showing homes either through video walk-throughs or face-to-face (Now mask-to-mask). If you want to see a home and don’t have a mask, let us know and we will one to you.
How are interest rates being affected by economic shifts?
Interest rates have dropped and are hovering in the low 3% range (at the time of writing this they are at 3.375%) and we expect that they will remain low as the Fed intends to stimulate the economy.
One thing that has been affected is Jumbo loans. These are loans that are higher than the “conforming” loans (the Portland single-family conforming loan limit is $510,400). Jumbo loans are issued by private lenders and almost all of these lenders have backed away from the market.
Lenders are getting creative and replacing many Jumbo loans with combo loans — One loan to the conforming limit and a HELOC (Home equity line of credit) to supplement the necessary amount.
We are keeping a close watch on the lending industry as things are changing and lenders are adapting to the shifts.
Can we close real estate transactions at this time?
Yes. We have been able to close on real estate transactions since shelter-in-place started. Real estate, title companies, and lenders have been able to keep working. Keep in mind that there may be slight delays due to the current situation. (We have not experienced a delay so far at the time of writing this.)
Are home values holding?
On average over the last 3 weeks, homes in the Tri-County area are holding firm at 100% sold price/ listing price. There hasn’t been any drop in sales prices up to this point. We are monitoring this closely.
Are buyers scattering due to fear of purchasing in this climate?
Yes and No. There are some folks waiting until our city’s shelter in place mandate is lifted before touring any homes. Others are getting inside houses, making offers, and buying homes. Some sellers have decided to wait until things settle down before listing; many are moving ahead and getting their homes on the market right now. This is an individual choice that every buyer and seller must make for themselves, and we are seeing all of the above playing out.
Will housing inventory increase?
Although the number of listed homes is down, the inventory (how quickly homes are absorbed on the market) remains at just over 2 months.
That is considered a strong seller’s market. We’ll be monitoring this activity each week to see what the trends will be as quarantine rules remain in effect.
Once things begin to level off in our nation — and certainly our local region — we will emerge with a housing shortage and indicators would suggest the housing market will remain strong.
Will the typically robust spring-housing-market shift to the summer or fall this year?
The National Association of Realtors and industry leaders that we trust do believe that typical, strong spring market will be delayed to the Summer and Fall, not missed altogether.
In addition, with uncertainty in the stock market, investors will be transferring their money to more stable ground and the real estate market fits that bill well.