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.
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.
"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.
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.
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.
Like many industries grappling with this crisis, there are many unknowns — and there is no clear timeline for how long restrictions will continue.
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Note that in addition to loss of Earned Income Tax related to COVID-19 layoffs (read “PA Unemployment Claims Skyrocket”; http://sco.lt/8s31Qu), Newtown Twp is in danger of losing a significant amount ofReal Estate Transfer Tax revenue if the decline in home sales persists. Real Estate Transfer Tax is a tax assessed and imposed upon the transfer of real property or an interest in real property within the limits of Newtown Township, regardless of where the instruments making the transfers are made, executed or delivered or where the actual settlements on the transfer take place, at the rate of 1% of the amount of the value of said real property. This tax is split between the Township and the Council Rock School District.
NOTE: The Township relies entirely on earned income tax, real estate transfer tax, and a local services tax to fund the general operations of the Township.
“COVID-19 Employee Impact Survey”; https://www.surveymonkey.com/r/6HTHQML