COVID-19 continues to negatively affect Ohio's real estate market
The COVID-19 pandemic continues to have a significant impact on Ohio's real estate marketplace, as results from this week's Ohio REALTORS Flash Survey: Economic Pulse finds both the residential and commercial sectors experiencing continued declines in activity levels.
The Flash Survey, which was conducted April 28-29, is an integral component of our ongoing discussions with the DeWine Administration, the Economic Recovery Task Force of the Ohio House of Representatives and business leaders in trying to identify measures to keep Ohio's real estate market stable during these challenging times.
Key findings of our Week 4 survey:
- 75 percent of respondent indicated that COVID-19 has significantly decreased or decreased home buyer interest. Of note, for the second consecutive week the number of respondents indicating "significant decrease" dropped to its lowest level in four weeks, with "decreased" and "no change" categories reaching their highest mark;
- 90 percent said the virus has affected the number of homes on the market;
- 51 percent of respondents said sellers have removed homes from the market, the level in four weeks of surveying;
- The top three changes in seller behavior were unchanged: Stop holding open house (84 percent), Buyers using hand sanitizer (71 percent), and Sellers not allowing buyers into home, require footies (61 percent);
- For the first time, we asked if owners/managers of residential rental property were having issues with tenants paying rent. 54 percent of respondents indicated no issues, with rents paid on time; 33 percent said there is a delay, but accommodations are being made; 11 percent noted a delay, with an indication that there will be difficulty in allowing; and finally 2 percent said leases are being terminated.
- Commercial/Industrial leases have shown a 91 percent significant decline or decline due to coronavirus, unchanged from a week ago;
- 86 percent of respondents said interest in C/I purchases have significantly decreased or decreased;
- 63 percent said the stock market correction has significant decreased or decreased interest in leasing;
- The top two impacts coronavirus is having on building practices were unchanged: Tenants working remotely (65 percent) and More frequent cleaning (57 percent).
Finally, Ohio REALTORS asked practitioners whether they were planning to take advantage of the government assistance programs available due to COVID-19.
- I have applied for a SBA loan program: 14 percent (residential) / 19 percent (C/I);
- I plan to apply for a SBA loan: 5 percent (residential) / 5 percent (C/I);
- I was approved for a SBA loan: 2 percent (residential) / 4 percent (C/I);
- I applied for the "Paycheck Protection Program": 16 percent (residential) / 14 percent (C/I);
- I plan to apply for the "Paycheck Protection Program": 7 percent (residential) / 10 percent (C/I);
- I was approved for the "Paycheck Protection Program": 5 percent (residential) / 5 percent (C/I);
- Yes -- I plan to apply for the "Pandemic Unemployment Assistance" fund: 34 percent (residential) / 52 percent (C/I);
- No plans to use government assistance programs: 38 percent (residential) / 44 percent (C/I).
"We greatly appreciate the active involvement of our membership in sharing insights on their marketplace over the past four weeks," said Scott Williams, chief executive officer of Ohio REALTORS. "The findings have been crucial in our ongoing conversations with Ohio's political and business leaders, allowing us to develop solutions to bring about positive change for REALTORS and the marketplace in general. Specifically, as a result of the findings of our surveys we were able to help streamline and simplify the pre-registration process for the Pandemic Unemployment Assistance benefits.
"Additionally, our Flash Survey reports were provided to Gov. DeWine's administration as they developed the Responsible RestartOhio effort," Williams continued.
CLICK HERE to view the full results from the poll conducted April 28-29.
