Torii

Coronavirus Update: How is the Real Estate Market Now?

One question we keep hearing is, “So how’s the market these days?” Here’s our input on what the real estate market is currently like, both in Massachusetts and in the Bay Area of California.

Fast changes in the industry

It goes without saying that things have changed in the real estate market since the onset of the novel coronavirus. Many aspects of selling real estate have had to change: Open houses are either by appointment or are not happening, in-person showings have mostly moved to virtual showings, and walk-throughs and closings are only occurring with social distancing and face coverings.

The living room of a luxury condo that Torii has as an exclusive off-market listing in the Mission area of San Francisco.
Torii started taking on listings in mid-April.

Something has shifted in the past couple of weeks, giving buyers more confidence in purchasing real estate. Our agents have likened the past couple of weeks to the January/February timeframe, when buyers were out in droves looking for their dream property.

The only problem we’re seeing right now? Lack of available inventory.

Once social distancing guidelines were put into place by local and national officials, many listings were pulled from the market, both in Massachusetts and California.

Lack of inventory on a national scale

For example: As of right now, there are 10,375 listings on the market in the Massachusetts MLS. That’s just slightly higher than the 10,042 we saw on the Massachusetts MLS on April 11th. (This includes single-family homes and condo listings only.)

There are an additional 2,500 listings that are marked as Coming Soon, Canceled, or Temporarily Withdrawn within the last 2 months. It’s very possible that those properties are just on hold while sellers decide what they want to do, or when they are comfortable having non-family members inside their homes.

Those extra 2,500 listings are important: They’re the difference between buyers submitting an offer as one of 25 potential buyers (something fairly common right now) or … much fewer.

According to data from Realtor.com, April listings in the Northeast fell 59.4% in April. Nationally, that number is much lower at ~15%. Torii operates in two of the country’s hardest-hit areas: Massachusetts and the Bay Area. Even so, the low inventory is not deterring buyers from asking to view properties or putting in offers.

In short, Torii is seeing a resurgence in buyers out looking for their new home. And now we’re just trying to find their perfect place for them! If you are thinking about selling but don’t want to open your home to the masses, let us know. We may just have the perfect buyer waiting in the wings!

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