As coronavirus cases rise, so does pressure on Merced County real estate market, agents
Anna Newkirk has watched her job change significantly in just the past month, due to the coronavirus pandemic.
Like many real estate agents, Newkirk, who is Merced County Association of Realtors board president, can no longer host open houses, showings, or face-to-face meetings.
Instead, she’s spending these days on her computer, reading e-mails and using technology to communicate with clients and staff.
“I would definitely say the video conference is huge now, especially for regular appointments and meetings,” said Newkirk, who also works as a sales manager at Century 21 MM in Merced.
“A lot of information is sent through emails. A lot of agents are stuck at home, few of us are still in the office. We have a lot of time to read information.”
Earlier this month, Gov. Gavin Newsom’s gave a statewide order to cease nonessential business during what officials are calling a “shelter at home” period. Newsom’s order is designed to slow the spread of the coronavirus.
With most potential customers staying indoors, Merced County real estate agents like Newkirk are now learning to navigate new waters to do business. Many are adapting to prevent the spread the coronavirus, as they deal with clients by following the guidance of the California Association of Realtors.
In an unprecedented move, California Association of Realtors, the state’s main real estate sales association, this month called on agents not to hold open houses, not to enter homes and not even meet face to face with clients for fear of spreading the coronavirus.
Newkirk said Thursday was the first day none of the 30 agents in her company worked from the office. “We’ve definitely seen a change,” Newkirk said. “It’s slowed down. A lot of Realtors are over 65 and trying to take care of themselves.”
Impact on the local market
The coronavirus pandemic has impacted nearly every segment of the states economy, as many businesses have either closed their doors or reduced operations.
The real estate market, consequently, has also been impacted in a relatively short amount of time. Still, although business may have slowed down for local real estate agents, they are still keeping busy.
Local realtor Andy Krotik said he just sold a house on Wednesday.
“I have maybe 10 listings so I’m still getting showings,” Krotik said. “I’m not as active. People are still buying, but it’s definitely slowed a little. It’s not coming to a stop.”
How much has the market slowed in Merced County? On average, the past couple years there would be about 1,000 real estate listings in Merced County, including commercial and multi-famliy homes, Newkirk estimates. Now, there are about 850 listings in Merced County.
There would normally be an average of two to three open houses in Merced County per day, Newkirk said. She said that number is down to one right now.
“Realtors should cease doing all face-to-face marketing or sales activities, including showings, listing appointments, open houses and property inspections,” the California Association of Realtors posted on its website. “Clients and other consumers are also subject to these orders and should not be visiting properties or conducting other business in person.”
Virtual home tours on the rise
If there is a sliver of good news, industry members say, it’s that some enterprising agents and real estate companies already are publishing sophisticated online virtual home tour videos that may persuade some would-be buyers to pull the trigger even if they do not physically enter the home they intend to purchase.
“Instead of open houses agents are doing virtual tours,” Newkirk said. “The agents will walk through the house, taking their video. Most agents are staying at home and eliminating the face-to-face interactions. There are still some situations, for example, if a client has to relocate in 30 days and needs to find a house or they are going to lose a job. In those cases we’re still doing a showing but following the CDC guidelines.
“We’ll open the house for them, keeping our 6-feet distance. We’ll let them walk through the house on their own and then we’ll talk when they come out.”
Newkirk says she hasn’t seen a lot of sellers pulling listings at this point. She believes a lot of people may be opting to hold off from posting a listing if they can afford to wait.
“Spring is traditionally the best time of year,” Newkirk said. “Unfortunately this is what is taking place.”
This story was originally published March 30, 2020 at 11:12 AM with the headline "As coronavirus cases rise, so does pressure on Merced County real estate market, agents."
