Coronavirus' Impacts On The Suburban Philly Real Estate Market

PHILADELPHIA SUBURBS, PA — In a normal year, March would see eager home buyers flocking to open houses, and sellers preparing their properties for what is usually the busiest season for the real estate market.

But this isn't a normal year.

As the coronavirus pandemic spreads throughout the country, people are confined to their homes and interactions are limited to a quick trip to the grocery store or pharmacy.

So with no open houses or home tours, where does that leave the local real estate market in what is usually a pivotal time for the industry?

Local agents say that while the spring market has gotten off to a fast start, things have slowed since the spread of the coronavirus. Last week's Stay at Home order across the Philadelphia suburbs has further stalled activity.

But the agents that spoke with Patch say they're confident the coronavirus is a challenge that the industry will quickly overcome.

It's all about supply and demand, the agents note.

"Demand for housing is very high and will continue to be high, and mortgage rates are at a low, which is creating a lot of activity," said Lauren Mauro Mellon, an agent with Addison Wolfe Real Estate in New Hope.

But that doesn't mean a turnaround will come without challenges.

"I think it's definitely going to have an impact," said Tom Conte, the broker and owner of Avanti Real Estate in Warrington. He estimates the coronavirus crisis will push the spring market back 30 to 60 days. And an upswing in sales will be predicated on the fact that businesses owners and workers get the assistance they need to bridge life through the outbreak.

If the public is confident they'll get the aid they need, "I think we'll have a relatively small period of time before things go back to normal," he said.

The U.S. Senate this week approved the largest relief legislation in the country's history, a package of nearly $2 trillion to help American workers and businesses in the fight against the virus.

Heather Oberhau of Berkshire Hathaway HomeServices Fox & Roach said while coronavirus is having significant immediate impacts, she believes the demand for homes will remain high when restrictions are lifted. She noted it has already been a very aggressive seller's market in some price points. Her last listing had 10 offers within 48 hours and sold well over asking price, she said.

But for now, the short-term challenges are two-fold, Conte explains.

First, there are safety concerns. And then there are the obvious issues of how to market a property that no one can actually see in person.

Those contemplating listing their properties will be inviting strangers to come through their homes. "The people coming through your house could be a carrier, and they could be touching things in your house," Conte said.

And as a buyer, you're entering homes that could potentially have the virus.

Conte said even prior to the governor's Stay at Home order in suburban Philadelphia, he reminded clients of safety best practices. "Protect yourself and protect others. Don't touch things all over. Basically browse with your eyes, and be mindful of the things others will be touching," he said.

The second challenge is how to market the homes that people can't currently tour.

To solve that conundrum, a bit of creativity is needed, Mauro Mellon said.

"It's a time for agents to start thinking outside the box in order to serve their clients as best as they can," she said.

That includes, obviously, online and social media marketing. And while traditional open houses are not an option at the moment, virtual open houses and home tours are a possibility. No contact closings are also an option and keep clients and staff safe.

"Our industry is a creative one, and 3D showings and virtual showings will generate a lot of interested buyers, especially as most people are home with time on their hands to search," Mauro Mellon said.

Like many industries grappling with this crisis, there are many unknowns — and there is no clear timeline for how long restrictions will continue.

"We're only two weeks into this, there are so many unknowns," Conte said. "We could go back to normal in a short amount of time, or things could go on and it could be like a falling knife."

Conte said one of the properties he's selling went under contract Thursday, showing there is "a sense of hope and confidence." He noted that the inspection process is stalled due to the governor's orders. "This is all a learning curve," he said, adding agents are working to adjust the best they can to the new conditions.

Mauro Mellon said she too is optimistic for the market once things resume and reopen. "When the stay at home orders are lifted and business goes back to usual, I imagine then we will be very busy," she said.