Early indications suggest that the county’s shelter-in-place order has had minimal impact on Morgan Hill’s real estate industry despite forcing agents to conduct business differently.
Throughout the Bay Area and nationwide, however, the typical beginning of the spring home-shopping season is off to a rough start.
Santa Clara County’s updated shelter-in-place order on March 31 clarified real estate as an essential service. However, it prohibits open houses and instead pushes real estate agents to conduct showings virtually. If a virtual showing is not possible, agents can show a home in person following social distancing protocols, but only two people are allowed, and the property must be vacant.
According to data by MLS Listings, 43 single-family homes sold in Morgan Hill in March, which was four less than March 2019’s numbers. Morgan Hill’s 77 active listings in March represented an 18 percent decrease from the same month last year, according to MLS Listings.
“While some sellers are reluctant to go into the market, there are definitely still people buying and selling homes,” said Sandy Jamison, president of the Santa Clara County Association of Realtors. “Life doesn’t simply pause for people even in these unique times.”
While city-specific data for the first half of April is not yet available, Jamison said the number of homes sold in the Bay Area has dropped by 19 percent since March 1 compared to last year, and new listings have dropped 31 percent in the same time period.
“We will need to give it some time to understand the full impact that this crisis will have on the real estate market,” she said.
In a statement, MLS Listings representatives said March was off to a strong start in terms of sales and prices in Santa Clara County before the shelter-in-place order went into effect.
“It is impossible to determine for certain to what extent the mid-month SIP hampered the local market, but next month’s data should paint a clearer picture of its negative impact,” the statement read.
According to Zillow, an online real estate database, the number of new listings nationwide usually grows by 50 percent from March 1 to early April. This year, however, the listings fell by 19 percent over that time period.
Newly listed homes were down 27 percent from a year ago during the first week of April.
Virtual home tours increased nationwide by 408 percent from February, according to Zillow’s research.
“With real estate being recently deemed an essential business, Realtors are still able to serve their clients while taking several precautions to stay safe,” Jamison said. “Many agents have adapted to the situation by creating virtual tours of their properties and meeting with clients over video conferencing. It’s reassuring to know that Realtors are still able to serve their clients.”
