Housing market in San Mateo County full of unknowns

Although the statements were seen as a green light for the industry to reconvene operations, Realtors, home buyers and sellers were left to navigate the open business with caution.

“There’s a lot of uncertainty out there. I’m trying to be positive for my clients but at the same time I just don’t see how this whole thing with the crisis and the financial state of the economy will not affect the housing market,” said Jeff LaMont, a real estate broker servicing San Mateo County.

Interpretation for what types of services fall within essential needs have not been so black and white. As the orders stand, in-person showings may be permitted but must follow Centers for Disease Control guidelines such as only allowing viewings for two individuals residing in the same household at once. The 6-foot of distance rule must also be followed.

Gina Zari, director of government affairs for the San Mateo County Association of Realtors, said that the main guideline to follow is meeting only if the activity is truly essential.

“No one is supposed to leave their homes unless for essential needs. That means the only viewings really should be for essential workers who need to move because their work requires them to,” said Zari.

The orders also state only vacant properties can be shown, limiting the amount of residences put on the market.

“There’s very few homes on the market now so people have a wait-and-see approach. People are on pause and buyers are concerned. They’re taking their time and are more cautious,” said Raziel Ungar, a real estate agent servicing the Bay Area.

Ungar pointed out the difficulties Realtors may have marketing properties with “less tools in the tool box.” A restriction on gathering bans open houses and broker tours, taking away the intimacy a buyer may feel viewing a home.

“I don’t foresee open houses coming back anytime soon. I don’t know what the guidance will be. I would think that it would be similar to now with social distancing and Realtors having to wear masks and gloves. It’s hard to envision an open house in the future,” said Ungar.

Marketing properties online has been in common practice, but now is being relied on as an attempt to fill the void left by missing showings. While Ungar believes digital marketing could be the new standard, LaMont says platforms like Zoom lack the draw face to face meeting provide.

Visual appeal plays a key role in sealing a deal but problems beyond presentation like recent stock market fluctuations could be a sign of future troubles, say LaMont.

“Forecastings are that we’re coming into a market crash. The financial market has been overvalued for a long time, and what we saw recently was a dead cat bounce. People think that after shelter in place we’ll go back to normal soon and that’s a mistake,” said LaMont. “Do I think prices will be affected? I do. I’m only speculating but I think prices are going to come down somewhere around 10%.”

Ungar believes those who had the financial stability to buy before the crisis hit the Peninsula may have less buying power but were probably not affected as severely as most others.

“If you could afford to buy before the crisis, you probably are still doing well. Not to say those people haven’t been affected. My clients who have or had to plan to sell their homes, they will because they’ve done well,” said Ungar.

Nonetheless, Ungar still says he is advising his clients to exercise caution. Both he and LaMont believe it is too early to say how the markets will look but housing data being collected through March and April will be useful in predicting a stabling of the market or an eventual crash.

Until further notice from officials, Zari said the market is on pause.