Spokane real estate market untouched so far by coronavirus impact

As coronavirus concerns influence the national real estate market, with some buyers choosing to delay listing their properties for sale, the dynamics of a hot Spokane market have so far stifled the outbreak’s impact here, Realtors say.

“I’m definitely not seeing a decrease in buyer traffic. We have a ton of buyer traffic,” said Ken Sax, designated broker at Keller Williams Realty. “I’m seeing more multiple offers now than I’ve seen in a long time, so (the coronavirus) is not impacting our market.”

Spokane Association of Realtors President Tom Clark echoed that it’s “business as usual” in the Spokane housing market, although it may be too early to tell if the coronavirus will have a long-term impact.

“I think we probably will see slowing, but with interest rates dropping, it’s having an offsetting effect, so right now, I don’t see a difference in our market,” he said.

The average 30-year mortgage rate nationally dropped to an all-time low of 3.29% last week, and the 15-year mortgage rate fell to 2.79%, according to Freddie Mac.

The National Association of Realtors released a statement Monday indicating the coronavirus is leading to fewer homebuyers, with 7% of Realtors nationwide reporting a reduction in buyer traffic in a recent survey.

“Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to homebuying and selling,” Lawrence Yun, NAR’s chief economist, said in a statement. “The stock market crash is no doubt raising economic anxieties, while the coronavirus brings fear of contact with strangers. At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions.”

Yun said in the statement it’s too early to assess if lower interest rates can overcome economic and health anxieties, but the NAR survey is implying home sales could drop 10% nationwide because of COVID-19.

Washington has the greatest number of confirmed COVID-19 cases in the U.S., with 267 cases. There are no confirmed cases in Spokane County, which is awaiting test results in a number of cases.

NAR advised Realtors to discuss pros and cons of holding an open house with sellers and propose alternatives, such as video tours of a property.

Seattle-based Redfin performs three-dimensional scans of homes that their agents sell so buyers can tour the home virtually. It also launched a push-button tool last week that allows buyers to request a home tour via video chat with an agent.

Clark said he hasn’t heard of any Spokane-area sellers canceling open houses during the coronavirus outbreak, but that’s because they are scheduling less of them in the area’s brisk real estate market.

“The market has been strong for sellers, so (an open house) isn’t necessary for sellers,” Clark said. “If a home is priced good, it sells quickly.”