Coronavirus in Oklahoma, Impacts on housing
Here are some notes on the coronavirus and its effects on the housing market.
Oklahoma City Realtors rushed online to deal with the coronavirus and its effects, with open houses and other uses of digital technology. Realtors flocked to the internet in new ways all over the country.
Zillow reported a near doubling in users' creation of its 3D Home tours, which allows real estate agents, sellers, landlords and property managers take 360-degree panoramic photos and easily create a 3-D tour for free with an iPhone.
Zillow said about a quarter of recent homebuyers surveyed said they prefer 3-D tours to in-person viewing, and 46% wish more listings included 3-D tours.
Generation Z and millennial buyers — the largest group of buyers — reported the highest share for both responses, 37% and 56%, respectively, Zillow said.
This made the more sense to me this week than the rest of the cacophony on the economy, from Glenn S. Phillips, CEO of Lake Homes Realty in Hoover, Alabama:
"Compared to the real estate boom and bust of a few years ago, the real estate industry is on much more solid ground. In that recession, real estate and lending lead to that disaster and therefore, could not lead the country out of the cycle.
"This economic crash has more in common with 9/11, which was an external event to the markets, not a failure by the markets. This leads us to believe that once the shock wears off and businesses are allowed to restart, demand will resume across the economy."
Phillips said he expected residential real estate markets, including lake property, to pause through at least April and May, maybe longer.
"We anticipate an 80% to 95% drop in transactions compared to these months in 2019, he said.
"We also believe, at least for now, that by 2021 the real estate markets, including lake real estate, will be similar (plus or minus 20%) to the market volume of 2019. When will we begin moving from the pause to a more regular volume of transactions? While no one knows, there are two signals.
"The first signal is the point in time where the number of new cases of COVID-19 begins to level off or decline in the U.S. The second signal will be when restaurants, bars, and travel return to normal (or mostly normal) operation. This second signal will most likely occur after the first.
"However, together these will signal to early movers in real estate that they can begin actively returning to the market. And they will."
You can reach Real Estate Editor Richard Mize at email@example.com.