At Rinu we’ve put together answers for common questions on how COVID-19 is currently changing real estate in the SF bay area. With mixed information circling around, we felt the need to clear the air and offer insight into what we do know.
The short version: The Real Estate business is still moving forward with new safety guidelines in place. On March 28, 2020 Real Estate services were added as an essential service as outlined by the federal government.
Has real estate in the bay area come to a grinding halt?
Currently, all services are up and running. While there is no denying COVID-19 is having an impact, buyers and sellers continue to transact. Housing and real estate services are considered an essential service. This allows for the sale and purchase of homes to take place, but also allows for basic services such as plumbing, electrical and construction to be performed under specific conditions. It is important to note that timelines to complete a transaction have been increased and could change given the fluid situation.
If the market drops, isn’t real estate dropping too?
Yes, it will, however real estate in the bay area doesn’t follow the same path as the stock market and is still one of the most solid investments you can make. For example, in the chart below we can see the fall of 2008 resulted in an overall drop in the stock market of 53% compared to local real estate dropping 27%. While your investment may take a negative direction, history shows us that over time it will appreciate and exceed the initial price.
How are you keeping buyers and sellers safe?
We are going beyond recommended guidelines for not only buyers and sellers but for our internal staff / vendors. This includes offering digital meetings and tours when available, sanitizing all contact surfaces pre and post tour or for required property maintenance. Making sure the appropriate person to person distance is being adhered to at all times. While the new process and procedures do increase timelines, we see them as mandatory steps to keep everyone safe during this time.
We’ll continue to provide regular updates on Bay Area Real Estate and how COVID-19 is affecting the market. Our next two topics will be Selling your home in a COVID era and Is buying still the right thing to do?
Thank you for taking the time to read our blog. As always, wishing you and your loved ones good health and safety.
– The Rinu Real Estate team.