My thoughts are with everyone in St Louis and the world over who is dealing with the many effects of the coronavirus, especially those who are sick and suffering and their caretakers.
With a Stay-at-Home Order in effect the last 2 days for most of the STL Metro, many residents are wondering what they are allowed to do, who can go to work, etc. St Louis County and city published a similar list of “essential businesses” and their supporting services that are exempt from the order, while still having to be less than 10 people together, and keeping a safe distance. St Charles is leaving it up to individuals, or their employers, to decide who should be going to work. From all the research I have done since Saturday when these orders were being announced, I have found that (1) housing is considered an Essential Business, and is operational with certain restrictions, along with supporting services; and (2) folks in general can leave their homes to pursue buying, selling or renting during this time, while observing requisite precautions of distancing and gathering.
What will happen over the next 30 days involves guesswork. But after speaking on Monday to many businesses in our industry; all of my clients with pending sales/ coming to market soon/ and buyers searching for homes; and setting a benchmark of home sale activity in two separate areas for clients that I have homes listed or coming soon; I feel positive about the housing outlook, and will be tracking its progress for these clients and reporting it out to you too. In the short term, some buyers will take a wait-and-see attitude, some will stay inside or close to home as much as possible, some have to move and are out looking right now, and some will use the opportunity to lock in the low mortgage rates and buy, likely with a little less competition right now. Long term will mainly depend on how the economy and jobs respond. If there is a protracted economic slump, the housing industry will likely slow down. If it bounces back quickly, we will follow suit.
The 2 areas I am tracking are (1) Manchester near my office, and (2) Wildwood just north of Eureka. (1) is about 1 mile square, all price ranges, single family and condo. Since Monday in this square, 2 homes went under contract at 290k and 370k, one changed from pending to temp off market at 265k, one closed at 257k, and no new listings came on. There are currently 4 on the market (was 6 on Monday), and 20 under contract (was 20 on Mon). This is a very strong seller’s market. (2) is about 1 mile square, $400k-800k, single family and condo. Since Monday, no change in status of these homes, where 3 are on market and 7 under contract. Also a strong seller’s market. The fact that 2 homes sold since the order went into effect, one closed, and only one terminated (unsure of reason), is indicative of a stable, moving market.
At this time, agents are showing, lenders are lending, title companies are closing (while limiting who can be in the room together), inspectors are inspecting (with limited participants), movers are moving, cleaners are cleaning, and utilities are changing. I think each company will enact certain restrictions during the COVID-19 spread to comply with any ordinances and common sense for public health and safety.
Gary Hoeferkamp, Broker - Owner of Hoeferkamp Real Estate 