Sound Off: How will the Bay Area’s shelter-in-place edict affect open houses and how properties are marketed?



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    Man and woman thinking about housing

    Man and woman thinking about housing


    Photo: Takasuu / Getty Images/iStockphoto

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Man and woman thinking about housing

Man and woman thinking about housing



Photo: Takasuu / Getty Images/iStockphoto


Q: “How will the Bay Area’s shelter-in-place edict affect open houses and how properties are marketed?”

A: San Francisco Association of Realtors has suspended broker tours and has strongly recommended that no open houses are to be held for three weeks. We are following that edict and I expect most real estate professionals will as well.

SFAR has offered realtors the option to put listings on hold on MLS so as to not have them accrue ‘days on market’. This is helpful to sellers and we hope Zillow and Redfin will offer similar options. SFAR is also allowing agents to temporarily add in links to Virtual Tours under Open House Comments in the MLS, which is helpful as well.


We are promoting video and virtual tours of our listings as much as possible and I think this experience will compel agents towards using more digital tools — if they weren’t already – to market listings, since it’s so useful to have in a time like this.



Vanessa Hatvany Kitchen, Compass, 415-447-6258, vanessa@teamhatvany.com.

A: Given the shelter-in-place orders, open houses in San Francisco, including broker opens, have been canceled. In the Bay Area where open houses have become an integral part of selling a home, Realtors and sellers need to find alternative ways to expose properties to potential buyers. Buyers and agents will have the continued ability to view online listings in the MLS and with the multitude of apps available. Beyond that, marketing of homes will be somewhat restricted.


In the current circumstances, showings will be limited, but still possible. What is uncertain, is whether buying or selling a home is considered an essential business under the local governmental orders.


There are circumstances where a seller needs to sell a property and may not have the flexibility to wait. Lockboxes, which are uncommonly used in San Francisco, will likely be used more frequently, as will virtual tours. The situation is still evolving by the hour and what we believe today, may not be feasible tomorrow. Similarly, a roadblock today may be removed within a day.

Currently there is uncertainty on obtaining appraisals. Some appraisers are still doing appraisals, but with a huge back log on refinances with ultra-low rates, there may be delays. Most title companies are operating with minimal staff, but they are using mobile notaries for signings and most cities are doing e-recordings.


While there are challenges, with the flexibility and the willingness of buyers and sellers to cooperate and to be understanding of the constraints, we are still able to buy and sell properties. Most importantly, be smart, be considerate of others, and take all necessary precautions.

Bernie Katzmann, Vanguard Properties, 415-655-5610, bernie@vanguardsf.com; Mike Shaw, Vanguard Properties, 415-308-4281, mikeshaw@vanguardsf.com.

Article source: https://www.sfgate.com/realestate/article/Sound-Off-How-will-the-Bay-Area-s-15148837.php

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Here’s how much it cost to buy a house in the Bay Area (before the outbreak)

Market watchers in the Bay Area are curious to see what the ongoing pandemic will do to home sales in the near future.

Even for those unable to buy or sell property, what happens to home value is a critical indicator of what’s happening to the rest of the economy. In March, Compass Real Estate updated its exhaustive map of sales activity across the Bay Area, crunching median sales prices for the previous 12 months.

What’s most interesting here is the timing: These numbers represent activity up through the second week of March—shortly before the Bay Area began sheltering in place. That means that when we compare the effects of the COVID-19 outbreak on the home market (whatever they may be), these numbers are what we’ll be comparing them to, a time capsule of Bay Area homes as they were just days before everything changed.

Here’s what the market looked liked shortly before shelter-in-place orders went into effect/.

  • In San Francisco, the 12-month average for a single-family house was $1.6 million. Breaking things down by neighborhood reveals a vast spectrum of prices, all the way up to $5.7 million for a house in Pac Heights on the high end, which was the second highest house price in the entire Bay Area. Note that the gap between Pac Heights and the rest of the city remains particularly dramatic; SF’s second priciest block was St. Francis Wood, where a home cost more than $3.2 million
  • SF’s cheapest place to buy was in Bayview, with a median price of $994,500 making it the only San Francisco neighborhood still averaging less than a $1 million for a house. Even in the Excelsior, the average cost of housing climbed to more than $1.16 million. A more detailed SF map that breaks Bayview down to smaller sub-neighborhoods finds houses cheapest in Bayview Heights ($945,000).
  • If anyone’s curious, the sole SF neighborhood with a median roughly the same as the city was Bernal Heights, with a $1.6 million average. The Outer Richmond was close to the middle mark with $1.58 million.
  • The most expensive place for homes in the Bay Area was Atherton, which, over the course of a year, averaged $6 million for a homes—no surprise, as this small, exclusive Peninsula city often gets singled out as the single most expensive place to buy nationwide.
  • The most affordable place to buy regionally was Vallejo at $427,000. In Contra Costa County, the most affordable redoubt was Pittsburg ($462,000). And in Alameda County, the subregion of southeast Oakland was cheapest at $496,000.
  • In the North Bay, southeast Santa Rosa was the cheapest spot at $620,000, while Belvedere proved priciest at $3.58 million.
  • San Jose’s average was $1.1 million, with the highest prices coming in the Almaden Valley neighborhood (more than $1.52 million), with Alum Rock the cheapest ($770,000).

The Compass figures were similar to the California Association of Realtors (CAR)’s figures from the same time, although CAR’s numbers are less comprehensive and represent monthly sales data instead of longer trends.

For example, the CAR average for SF houses sold in February was $1.61 million, nearly the same number as the Compass report and up $105,000 from the same time last year. With the exception of Contra Costa County, which dipped 2.2 percent from February 2019, every Bay Area County saw significant price appreciation year over year, up to 15.4 percent in Santa Clara County.

Almost all prices were up, just as has been the case consistently for years. But then, over the course of just a few weeks, almost everything about life in the Bay Area changed, and where we go from here remains to be seen.

Article source: https://sf.curbed.com/2020/4/9/21213948/bay-area-home-prices-compass-coronavirus-2020

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Buying a house in San Francisco and the Bay Area during coronavirus

As the global pandemic touches every aspect of life, people have been asked—or, in some cases, ordered—to shelter in place. But for some, either through necessity or desire, now is the time to house hunt.

Homebuyers right now are entering a very different market than in the past. The number of active listings in the Bay Area tanked from roughly 1,000 at the start of March down to 550 three weeks later. The number of listings pulled off the market increased more than tenfold in a single week between March 9 and March 16.

“Since the shelter in place was first initiated a couple weeks ago, the market nearly overnight shifted to a buyer’s market,” Justin Fichelson, a San Francisco-based Realtor tells Curbed SF. “Sellers by and large have had to decide to either remove their listing from the market or to adjust their price expectations.”

This isn’t to say people have stopped buying.

Some people, like Ambika Castle, a front-end engineer at Vox Media, were in the process of closing on a home when the shelter-in-place order happened. “We lucked out a bit, I think, so my circumstance may not be totally normal in that we started the day before shelter-in-place took effect,” she says.

Then there are the unusual buyers with money to spare who can still buy a home the way normal people order a Nintendo Switch Lite from Amazon. Take, for example, this Emeryville loft that sold to a cash buyer only one day after appearing on Curbed SF.

To help you navigate these unprecedented changes, we asked a handful of real estate experts in the Bay Area to weigh in on what you need to know about buying a home during the novel coronavirus.


Are prices coming down?

Every so slightly, yes. The most important thing that’s happening in the real estate market right now is that everything is frozen: Transaction volumes have slowed to a near standstill. With few being people able to move right now, we could see a slight dip in prices.

“In the transactions that we have closed since the original shelter-in-place order (about ten in total), approximately a third of them were renegotiated in some form by up to a 5 percent discount,” Nina Hatvany, a Realtor with Compass, told Curbed SF. “Most of the deals that were not renegotiated were those under $2 million, and we had an offer come in on a listing of ours that was over asking (priced at under $2 million).”

Now that the shelter in place has been extended until May 3—and could possibly be extended again—the economy has moved into an official recession. This means that the most notable price cuts will happen with the priciest of properties.

“I believe we’ll see prices drop by as much as 10 percent, particularly at the level of homes priced at $4 million and up,” she says. “The under $2 million market should still remain strong as inventory is so low and demand is still high. I anticipate we’ll see some price drop at that level, but more like in the 5 percent range.”

But not everyone is convinced that a widespread price drop lies on the horizon.

“So far we are not seeing prices come down as we are on hold for showings right now,” says Tracy McLaughlin, a real estate agent based in Marin County. “I think that the biggest effect on pricing we will see right now will be mostly about sellers not overpricing their homes versus actually reducing prices right out of the gate once COVID-19 is behind us.”

Issi Romem, follow at UC Berkeley’s Terner Center for Housing Innovation, agrees, saying, “In the for-sale market, we are less likely to see any drop in prices in the short term.” He notes that in the long term, when the economy and the housing market thaw from the current coronavirus-imposed freeze, housing prices will depend on the state of the overall economy.


When do you think people will start listing their homes again?

Although sellers have pulled their homes from the multiple listing system (or, the MLS), properties can still be found off-market. Since the shelter-in-place order went into effect, Curbed SF has received at least two private listings per day from listing agents still eager to showcase their homes. Sellers have also looked to other tools that the public has come to embrace, going beyond Zillow and Redfin.

“Third-party websites are missing the full picture,” says Marco Carvajal, a San Francisco real estate agent. “The top agents are using private pre-market marketing databases, networking groups, and Zoom meetings with peers to discuss upcoming homes for sale.”

Within just a few weeks, he says, he’s reverted back to a relationship-driven business while pulling away from the 2010s marketing norms.


Can you buy a house if a city is under a shelter-in-place order?

While you cannot physically visit a property at the moment, you can still purchase a home. Many realtors offer photographic or video tours in lieu of an in-real-life tour. The California Association of Realtors (CAR) cites the real estate industry as an “essential business,” but opinions vary.

Until recently, some realtors have been able to show homes while keeping physical distance, usually with the aid of a key lockbox.

“Open houses are obviously not happening, but private showings often with lockboxes in place are,” says Fichelson. And Hatvany notes that two recent buyers “purchased having viewed the photos online, and then visiting the home using a lockbox.”


Because of all the financial uncertainty, are banks tightening up even more? Are banks closed or slower than before?

Many banks have closed their branches for the time being in order to prevent virus spread and to keep their employees healthy, and with that comes delays.

McLaughlin says, “I have seen a bit of a delay with a few lending institutions on time for closings, but others are tracking what they did for years proceeding this. Banks will likely tighten a bit but the well regarded institutions seem to be offering the same products they did two months ago.”


How has the appraisal and inspection process changed?

Shelter-in-place orders mean that most appraisers or inspectors are not visiting properties at the moment.

“A significant amount of appraisers have chosen not to work right now and the ones that have only want to go if a unit is vacant, staged, and/or accessible through a lockbox,” notes Fichelson.

Expect a much slower process if you’re seeking an appraisal or inspection.


Are closings being delayed or put on hold due to stay-at-home orders?

Unless you’re able to pay in all cash, you should anticipate delays in closing. Most banks and lending institutions are backed up right now due to everything from business loans (small and large) or an influx of owners who are refinancing to take advantage of exceptionally low rates. “This, in conjunction with it being difficult to get appraisals done on time, has caused closing delays,” says Fichelson.

Banks are also less willing to take risks on major loans or loans with riskier credit profiles. Hatvany adds, “I believe that we will see that trend continue and intensify as the economic downturn and market uncertainty continues. We haven’t seen any banks closed, but they are certainly working at a slower pace than before, with fewer staff on hand.”

Article source: https://sf.curbed.com/2020/4/9/21211549/coronavirus-buying-house-san-francisco-real-estate

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Could the Bay Area Emerge Stronger After COVID-19? – The Bold Italic

In effect, the entire tech industry is forced into a massive experiment at once.

Today, even the Bay Area’s legendary traffic, now (normally) the second-worst in the nation behind only car-obsessed Los Angeles. Bay Area drivers waste 3.3 billion gallons of fuel every year while waiting in traffic delays. A recent rush hour drive from the East Bay into San Francisco for an essential doctor’s appointment — which normally takes me two hours from San Ramon — was showing as one hour and seven minutes on Google Maps.

Even disasters can breed lasting, powerful changes. That is especially true for the Bay Area.

Beyond these concrete changes, we’ve seen the Bay Area change in recent weeks when it comes to a sense of community, shared purpose, and connection among many of our residents. Deserved or not, the Bay Area has a reputation for workaholic citizens who rarely take the time to engage with their local communities or neighbors. In normal times, my Nextdoor feed is a mix of complaints about the actions of local drivers and vaguely racist messages.

Article source: https://thebolditalic.com/one-covid-19-side-effect-a-more-livable-bay-area-2f443b43ea38

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The rules for selling a SF home during the coronavirus crisis

Is real estate considered “essential business” during the COVID-19 crisis? The California Association of Realtors (CAR) thinks so, citing guidance from the federal government, but opinions vary and there are a lot hoops to jump through for real estate agents attempting to work during this strange season.

Lotus Lou, spokesperson for CAR, tells Curbed SF that previously agents could only show homes virtually. Now guidelines in many jurisdictions have loosened up, and in some Bay Area cities in-person tours are allowed once again—but with caution.

“Open houses are still not allowed,” says Lou, noting that when city, county, and state rules conflict, realtors must abide by whatever standard is the most restrictive. She adds that more brokerages are doing their jobs chiefly—or, in some cases, entirely—online.

“The practice of selling real estate has been deemed essential,” Vanessa Bergmark, CEO of Red Oak Realty in the East Bay, tells Curbed SF. “However, many ancillary services—staging, prep including landscaping, painting, tiling, floors—is not.”

And the rules vary from place to place; Contra Costa County and most of Alameda County allow photographers to shoot homes for sale, for example, but Berkeley does not.

Center for Disease Control [CDC] guidelines instruct home sellers how to properly disinfect a house, like disinfecting doorknobs and light switches and other constantly touched surfaces. However, Bergmark says that CDC-approved cleaning agents, like bleach and rubbing alcohol cleaning products, are difficult to come find right now. She calls the patchwork of different standards “muddled.”

Vanguard Realtor Marco Caraval notes that brokerages are implementing their own rules about how to make the selling process safer. “I’ve had agents offer to allow in-person access to my buyers after signing forms” releasing the owners from legal liability, he says.

To learn more about how San Francisco is dealing with the rules of selling a home during a pandemic, Joseph Sweiss, spokesperson for the SF Department of Emergency Management, broke down the dos and don’ts of brokering while sheltering in place:

  • “Real estate agents, escrow agents, and other service providers that facilitate residential transactions like home sales and apartment rentals are essential workers” under SF’s current rules, says Sweiss. However, in-person tours of any kind are off limits in almost all cases.
  • Only in cases where a virtual tour is impossible (for example, because no photos or 3D models were created before the shelter-in-place order) may a physical tour happen, and those are limited to two visitors and one agent, and restricted to unoccupied units.
  • San Franciscans are allowed to move into new homes, but only in cases where moving plans predate the shelter-in-place order and cannot be avoided—e.g., if not moving would result in homelessness, physical danger (like escaping domestic violence), or unsanitary conditions. Note that moving services are essential businesses under SF’s health order and currently remain in operation.
  • Sweiss reemphasizes that when state and local rules conflict “you must comply with the stricter of the two orders.”

For more details on the new rules in real estate, Redfin created a map of the U.S. breaking down the different guidelines for showing homes in different cities and counties.

Article source: https://sf.curbed.com/2020/4/7/21211871/sf-real-estate-essentia-business-coronavirus-covid-19

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