The number of Corona del Mar homes for sale listed through the MLS is now approaching the lowest level in the last four years. Many potential property sellers are removing their homes from the market because of their concern about contamination during the current nation wide COVID-19 health crisis. For those readers who are numerically oriented, the following table may satisfy your cravings.
In parallel with this decrease of available listings, the mortgage interest rates are historically low. There have been some brief increases and fluctuation in mortgage rates due to the financial institutions processing pipelines being flooded with new applications for refinancing. However, the overall trend for the last several months has been downward.
In normal times, when the listing inventory is low and the interest rates are low, property prices rise. Reasons for this action are that housing demand is fairly constant and increasing the price during low interest periods does not significantly impact the potential buyers allocated monthly housing budget.
In today’s market the equation has changed because the potential buyer is now also concerned about possible contamination during the viewing of homes and completing the purchase transaction. So, there are now fewer buyers active in the market.
The result of the above is interesting:
For people wishing to refinance: Submit an application and all your data to your favorite lender so that you are completely approved. When the interest rates hit a low that is comfortable for you, pull the trigger instantly and refinance.
For people wishing to buy: It is a perfect storm, the interest rates are low, the price increases have flattened because of less demand, you are competing with fewer buyers for a particular property and for the seller to be active now, they really want to sell.
For people wishing to sell: Many sellers with no need to sell are in process of removing their homes from the market. For those of you who are still standing and have a strong desire to sell your home, there is now less competition, the interest rates are low and the buyers in the current market are serious about buying a property.
To reduce contamination during the process: We are currently following these steps.
- Preliminary showings via virtual tour. (sample 1, sample 2)
- Purchase contract negotiated and accepted, proof of funds and loan pre-approval letter required prior to physical tour.
- During physical tour, clients will be provided with disposable masks, disposable gloves and disposable shoe covers. Only two clients at any one time may access the property with the agent. Children will not be allowed on nor access to the property. The seller is not to be present during the tour. CDC social distancing protocol will be followed.
- All documents not requiring physical signature are signed electronically.
- Documents requiring physical signature are presented via mobile notary equipped with masks, gloves, disposable pens, disposable fingerprint pads and following CDC social distancing protocol.
- All property inspections and repair work to be performed by individuals following CDC social distancing protocol.
- We are currently open for business and always available to assist you with your transaction, electronic signatures and electronic communications.
What are your thoughts?