Mary Ann Bongiorno is the Vice President/Broker for Watson Realty Corporation and Cara Ameer is a bi-coastal agent with Coldwell Banker licensed in California and Florida. Ponte Vedra Recorder reporter Amber Lake sat down with both to talk about the future of the real estate market in Northeast Florida in the wake of the COVID-19 pandemic.
Here are excerpts of that interview:
Question: Tell me about how you or your organization is currently handling business during the shutdown. Do you offer virtual tours? How are you best meeting the needs of potential clients and what creative ways are you developing to service those needs?
BONGIORNO: We're trying our best to keep the sellers and buyers as comfortable as possible and we're actually trying to shift a little bit to do virtual open houses and virtual showings when possible. Virtual tours are and always have been something we offer and provide on every listing. When we have a live physical showing, we ensure surfaces are wiped clean before and after the showing and ask the homeowner to leave all doors open inside the house, so no one has to touch anything.
AMEER: Real estate has been deemed an essential business by the State of Florida. With that in mind, we are implementing changes to showing protocols and implementing social distancing practices in all that we do. The use of video, 3D virtual tours along with virtual walkthroughs are very powerful tools that allow us to bring homes to the buyer, wherever they are. In person open houses have shifted to virtual open houses and the agent can do those via multiple live platforms available on social media. They can also record the video and post it at designated day/time for their open house. I received an offer on one of my listings from out of state buyers as the COVID-19 situation was ramping up, purely due to the professionally produced listing video that I had posted with the listing. I have been doing several neighborhood “drive about” videos for another customer that is out of state and plans on moving here by July to showcase the different areas they are interested in, so we are accomplishing as much of the search as we can remotely. Tools like Facebook Live, Facebook Messenger, WhatsApp, Zoom and Microsoft Teams are keeping business moving forward. We are meeting as an office virtually and also conducting video meetings with customers this way. Virtually every segment of the real estate transaction has been transitioning to a virtual platform in some way, except for inspections which still involve the physical presence of an inspector, but they are also taking precautions wearing protective gear and prefer to minimize the numb of attendees at an inspection.
How has COVID-19 affected the viability of the local market so far, in your opinion?
BONGIORNO: February and March started out as very strong markets, but once COVID-19 emerged we started seeing both buyers and sellers pulling back. As the weeks went on the pullback became more significant. These are unchartered waters so no one knows for sure how the market will come out of this. North Florida has been strong and there is no reason to think things will change once life is back to normal. Right now, people are cautious, as they should be, but with that being said, there is still activity out there. People will always need a place to live and Florida is probably better positioned than most other areas in the country given the mild climate and low taxes.
Given the uncertainty of the length of the pandemic, do you foresee any changes to that in a month? Three?
AMEER: I do think pent up demand is building amongst buyers, particularly those that can’t get here right now due to travel restrictions. When the pandemic situation eases, I do think we are going to see the real estate market become very active again as people are free to move about the country. With so many other plans that have been canceled with regard to weddings, graduations and other celebrations, for those in a position to do so - those that have the means to buy along with the luxury of time which we now have, will be in a position to start their search. I also think with people spending so much time at home, they are re-examining their homes in a completely different way from before. For some, this situation may amplify their needs and wants even more so, and they may be motivated to look for a different property. For example, with every community pool, beach club and the beach closed, some people may want a pool if their current home doesn’t have one or they may want more of an outdoor living space to retreat to along with a summer kitchen. A home office may become an absolute must or a separate in-law suite or bonus room to allow family members to spread out, especially if someone were to get sick, etc. We may be thinking differently going forward of what we need in a home should we encounter a situation like this again.
How is the market in Ponte Vedra similar/different to others across the U.S or Florida?
AMEER: Ponte Vedra Beach is a unique market in that it is a resort/second home market as much as it is a place that people reside full time. The favorable weather, resort lifestyle and no state income tax have been continual drivers to this area for people from larger metropolitan areas – the Northeast being a huge feeder pipeline into this area as well as Atlanta, the Midwest as well as some movement from people leaving California to this area as well as moving from South Florida. I think Ponte Vedra Beach is well poised to weather this situation and is only going to come out stronger on the other side. After 9/11, there was some ex-migration out of the New York metro area to places like Florida that offered a bit more relaxing and less stressful way of life. I think we may see some of that in the coming months ahead. It can be difficult to be cooped up in a dense living situation with nowhere to go – at least in a place like Ponte Vedra Beach, there is an abundance of outdoor activities to enjoy, even if you don’t have the biggest house, but certainly you can get a lot more for your money. For what people may be paying in rent in New York, that may be more than an actual mortgage payment here.
I am licensed in California as well as Florida so have been able to get a broad view of what is happening across the country.
With regard to other markets, the no income tax states like Florida, Nevada, Tennessee, Texas have seen a surge of new residents over the last few years. That has caused inventory shortages and prices to rapidly increase and in some cases, make some places less affordable then they used to be and that has also been the case here. Ponte Vedra Beach property is a small community that has seen prices increase exponentially over the last few years. However, the weather and no state income tax will continue to work in our favor, particularly at a time like this.
What advice would you give someone looking to invest in real estate at the moment?
BONGIORNO: For people who have to buy right now, they are more likely to get a good deal because there is less competition out there. Conversely, sellers who must sell need to be aware of this dynamic and respond accordingly. Right now, the buyers who are out there are serious, it is similar to Christmas time, if they are in the market now, they are here because they really want or need to buy. They are not just kicking tires. If you have a secure job and don’t need to sell your house in order to buy, this could be a wonderful buying opportunity. Unlike 2008 this slowdown has nothing to do with banks or lending practices. When the threat of the pandemic is over, if interest rates remain low, things should return to a more normal pace.
