How the coronavirus is slowing LI home sales

Like other businesses hurt by the coronavirus pandemic, the Long Island real estate industry is slowing, with many open houses canceled last weekend. But it’s also adapting, as listing agents use technology to serve buyers and sellers, some of whom are already going through the process.

As of 8 p.m. March 22, Gov. Andrew M. Cuomo ordered nonessential workers to stay home, and while brokers aren’t taking the directive lightly, they continue to work from home trying to get sellers out of their homes and buyers into them. Several agents have resorted to virtual tours, but some doubt how effective these can be.

Frank DeLucia, a listing agent with Century 21 American Homes, said while he has virtual tours and photos of his listings, he expects to see the industry slow down.

“I haven’t had anyone in 30 years buy a house from a picture,” he said.

The impact

Even before the governor's order, the number of open houses scheduled for last weekend dropped significantly from the week before.

The weekend of March 13-15, there were 1,927 open houses. Last week, there were only 356 scheduled for March 20-22, according to Michael Miller, business development manager of Long Island Board of Realtors. And there's no way to know if they were actually held, Miller said.

On March 18, Zach Scher, listing agent with Coldwell Banker Residential Brokerage of Smithtown, was eager to hold an open house for a spacious four-bedroom, two-bathroom Colonial on a cul-de-sac in Smithtown.

Like others, he was taking extra precautions, bringing potential buyers one at a time, cleaning doorknobs and surfaces with sanitizer wipes.

By March 20, all of Scher’s open houses were canceled.

A National Association of Realtors survey released March 19 shows nearly half of real estate agents said homebuyer interest has decreased due to the coronavirus outbreak.

“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” NAR chief economist Lawrence Yun said.

But there are buyers and sellers still forging ahead, said Deborah Hauser, chief operating officer of Daniel Gale Sotheby's International Realty.

“Listing agents are in constant communication with their sellers and have made, in most instances, virtual tours of the properties as well as 3-D interactive floorplans,” she said. “They continue to engage buyers and sellers virtually, through email and social media channels.”

Hauser said they had closings last week and the rental market remained robust.

But with the county clerk’s office closed, closings have become more complicated and they are working on solutions with attorneys, title company and agents, she said.

Adapting to coronavirus

Hauser said the final walkthroughs of Daniel Gale Sotheby's International Realty will be done by video.

“We still see homebuyers continue to shop, our website traffic has increased tremendously but it will be challenging for both buyers and sellers over the next several weeks.”

Richard Connelly, a listing agent with First Hampton International Realty in Westhampton, said his listings are well situated since they already use virtual tours and high-resolution drones for 90% of their homes.

Viewing a home through a 360-degree camera is “almost like you’re walking through the property, the home itself,” he said.

Some of his clients are still eager to move forward, he said, scheduling eight open houses last weekend that were only canceled after a directive Friday morning to do so.

“We had owners who want their houses sold, maybe even more now than ever,” Connelly said.

For now, he’s sending a photographer to a home if the owner wants.

While he said there’s still lots of interest, given the uncertainty in the market and the difficulty getting attorneys and title agencies to work, offers are being dropped.

Connelly had three offers accepted last week and “all went south.”

Last week, Amar Prashad, a listing agent with Daniel Gale in Greenvale said low-interest mortgages were making the homebuying process more appealing.

“I think people who are already buying are definitely still motivated by that. That has been a big factor why they haven’t stopped looking yet.”

By March 20, he was working with all virtual tours, he said, and people were still calling to purchase and sell.

Uncertainty ahead

Some clients have held back on putting their house on the market without the ability to show it.

“If someone calls to list their house now, you tell them, ‘I’m not allowed to show it.’ What good is that?” DeLucia said. “At this point, everything is uncertain.”

Colleen Heinze has been looking for a house on Suffolk’s North Shore since January, but she put her search on hold about a week ago.

A midwife, Heinze got a mortgage pre-approval and “last weekend was the first weekend that I haven’t done open houses in five or six weeks.”

The Setauket resident said her health and other people’s health is more important than buying a house now.

“I’m not under any pressure to buy, I’m waiting for the right piece of property,” she said.