As restrictions on real estate activities in Pennsylvania are eased a bit, the real estate industry here will have to adapt to the new norms when conducting in-person showings and other real estate transactions.
Real estate transactions with face-to-face interactions will be allowed under the guidance issued by Governor Tom Wolf, Lehighvalleylive reported. The restrictions on in-person transactions and other real estate related-activities, previously relaxed on "yellow" counties only, will be further eased but with some limitations.
The guidance that announced on May 19, 2020, will require real estate agents to stagger their in-person showing schedules and should have no more than the real estate professional and two persons gathered inside the property at any given time. Agents will also need to do verbal health screening of all individuals who are at the in-person property showing.
Physical distancing should also be exercised, and the wearing of face masks or coverings must be observed at all times. Real estate agents are also encouraged to minimize time spent inside the property and to guide sellers on the proper way of sanitizing the property for showings.
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Homebuyers seemed to have welcomed the easing of restrictions as requests for property showings surged as soon as the announcement was made, the report said. While it is a welcome development for the real estate industry, agents will have to adapt to the new guidelines to ensure that safety and health protocols are followed.
Paperwork for transaction settlements/closings, including notary and power of attorney, and exchange of documents will have to be done electronically, wherever possible. Otherwise, in-person meetings will be permitted as long as social distancing is followed, and attendance is limited to the signatories and their legal counsel or the real estate agent.
The guidance comes after the governor vetoed House Bill 2412, citing that not enough safety protocols were provided and that the legislation would restrict municipalities from issuing use and occupancy permits, and from performing safety inspections.
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Pending home sales have considerably dropped in March, according to the National Association of Realtors report, with each of the major regions seeing their month-over-month and year-over-year pending home sales transactions declining during the period.
The pending Pending Home Sales Index or PHSI fell 20.8 percent in March to 88.2, with year-over-year contract signings declining 16.3 percent. PHSI dropped 14.5 percent in the Northeast region, to 82.3 while in the Midwest, PHSI fell 22.0 percent to 85.6 in March.
In the South Region, PHSI declined by 19.5 percent to 103.7. The West region also suffered a decline in PHSI, down by 26.8 percent to 71.4 in March.
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These declines in pending home sales are expected to rebound, the NAR report said, as buying activity resumes once the economy reopens and people become accustomed to social distancing protocols. In fact, despite the home sales for the year expected to drop 14 percent, home prices have remained strong and projected to increase by 1.3 percent in 2020.
For the time being, the real estate industry is utilizing technology to their advantage, particularly the use of virtual tours and e-signings to bring buyers and sellers together.
