Monthly Archives: June 2020

NYSAR update on NYS phase 2 openings | Mt Kisco Real Estate

Dear NYSAR members,

Below, please find additional frequently asked questions for the Phase 2 regional re-opening of “New York Forward.”  These are questions we have previously answered, however, the answers have been modified to reflect Phase 2 guidance.  For frequently asked questions prior to, and including Phase 1, as well as Phase 2 questions, please visit nysarcovidupdates.com.
 
Q – How does the COVID-19 pandemic impact Fair Housing? Can I ask a client/customer/consumer if they have been exposed to COVID-19?
 
A – Yes, the Interim Guidance Document provided by ESD and DOH includes permissible screening questions relating to COVID-19 exposure that must be asked of every seller/buyer/landlord/tenant.
 
Q – Can a professional photographer and/or videographer take photos or video of a property under Phase 2?
 
A – Yes, if the photographer/videographer is operating in a region open under Phase 2.
 
Q – How do I use the NYSAR COVID-19 Phase 2 Disclosure form?
 
A – Below, please find instructions on how to use the Phase 2 form: The form is OPTIONALYou must have the permission of your broker before utilizing the form.  Your broker may require you to either: a) use the NYSAR form; b) use a form the broker had prepared; or c) not use any form.The form has been provided to local boards, MLS’ and brokers previously and they may have released the form already with their name and/or logo.Licensees should present the form to the seller or buyer in the same manner an agency disclosure form is presented.The COVID-19 Disclosure form notifies the seller and buyer of the risks associated with permitting an individual to enter one’s property or by entering another individual’s property.By signing the form, the seller or buyer acknowledge that by permitting such access or by accessing the property they assume the risk of potential exposure to COVID-19.  Licensees should explain to the seller and/or buyer that the form outlines the risks of COVID-19 exposure and by signing the form they are acknowledging and assuming such risks.Licensees should have the seller and/or buyer sign the form, print their name next to their signature and provide a signed copy to the seller or buyer and retain a signed copy for the broker’s file.The form may be delivered in any manner currently permitted (paper, electronic transmission).A copy of the COVID-19 Phase 2 Disclosure form can be found HERE
Q – If I use the NYSAR COVID-19 Disclosure form can I perform in-person showings in a Phase 2 region?
 
A – Yes, so long as all requirements contained in the Interim Guidance Document are strictly followed.

Q – What is the seller and/or buyer agreeing to when they sign the NYSAR COVID-19 Phase 2 Disclosure form?
 
A – In the event the seller and/or buyer is exposed to COVID-19 as a result of permitting or gaining access to the property, the form acts as a disclosure notice outlining the risks and having the party acknowledge that they are assuming such risk through their actions.  If a licensee and/or broker were named in a lawsuit alleging exposure to COVID-19 by the seller and/or buyer (or a member of their household), the form could be used to show the seller and/or buyer were aware of the risks and assumed the risk of permitting access or gaining access to the property.
 
Q – What if the seller and/or buyer refuse to sign the COVID-19 Phase 2 Disclosure form?
 
A – Licensees should follow the same procedure when a consumer refuses to sign an agency disclosure form.  If the seller and/or buyer refuse to sign the form, the agent shall set forth a written declaration of the facts of the refusal and shall maintain a copy for the broker’s file.
 
Q – If a buyer/tenant refuses to sign the COVID-19 disclosure or answer the screening questions, can the seller/landlord refuse to show the property to that party?
 
A – Yes, the seller/landlord can require compliance with both the COVID-19 Phase 2 Disclosure Form as a prerequisite before the showing.  Consumers are not required to sign the COVID-19 Phase 2 Disclosure or answer the screening questions and if all parties are comfortable with that, a showing may occur.
 
Q – If a seller/buyer/landlord/tenant answers yes to any of the screening questions, what should I do?
 
A – If a seller/buyer/landlord/tenant answers yes to any question, it would be up to the parties as to whether they want to continue with the in-person showing assessing what risks they may be taking.  For instance, a buyer is a health care worker and is exposed to COVID-19 as a result of their occupation.  That would not disqualify them from the in-person showing if the seller is comfortable with the precautions being taken.  If they are not comfortable, a licensee would not be required to conduct an in-person showing if any of the questions were answered “yes”.  This would be a scenario where it would be prudent to utilize the COVID-19 Phase 2 Disclosure Form.
 
Q – Can a licensee perform an in-person open house in a region open under Phase 2?
 
A – Yes, however the Interim Guidance Document only permits one party to be in the property at a time.  As a best practice, licensees should schedule appointments for an open house in order to avoid having multiple parties present at the property and congregating outside waiting to see the property.
 
Q – Can I have in-person contact with a member of the public in a region open under Phase 2?
 
A – Yes.  The Interim Guidance Document permits in-person contact with a member of the public so long as required health and safety measures set forth in the document are followed.
 
Q – Can the purchaser be present during the inspection?
 
A – That would be up to the inspector and their interpretation of the Interim Guidance Document.
 
Q – Can I conduct a final walkthrough with a consumer in a region open under Phase 2?
 
A – Yes, so long as all requirements for a showing contained in the Interim Guidance Document are strictly followed. 
 
Q – Can a licensee perform in-person showings in a region open under Phase 2?
 
A – Yes, so long as all requirements contained in the Interim Guidance Document are strictly followed.
 
Q – Can I attend a closing in a region open under Phase 2?
 
A – Licensees should not be attending closings in-person.
 
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US homebuilding drops 30% | Katonah Real Estate

The US housing sector suffered contruction declines nationwide amid the pandemic (AFP Photo/JUSTIN SULLIVAN)
The US housing sector suffered contruction declines nationwide amid the pandemic (AFP Photo/JUSTIN SULLIVAN)

Construction of new homes plunged just over 30 percent in April from the previous month, amid the widespread US lockdowns to prevent the spread of COVID-19, according to government data released Tuesday.

The collapse to just 897,000 units put the annual rate of housing starts 29.7 percent below the same month of 2019, the Commerce Department reported.

The declines were widespread across the country, with the Northeast taking the worst hit — a 44 percent drop in construction starts — while the Midwest saw a relatively small 15 percent decline.

Building of multifamily housing saw the most severe impact in most regions.

Meanwhile, permits for new construction, which in normal times is a sign of demand in the pipeline, fell 20.8 percent compared to March.

But with the ongoing coronavirus pandemic, these are hardly normal times.

“Due to recent events surrounding COVID-19, many governments and businesses are operating on a limited capacity or have ceased operations completely,” the Commerce Department said, adding that the data quality still meet publication standards.

Housing is a critical sector of the US economy and demand was high before the crisis, given low mortgage lending rates, and builders were struggling to keep up with demand while prices were moving higher.

Since the pandemic hit, the Federal Reserve has slashed the benchmark interest rate to zero, which could be expected to help support home buying. But with 30 million jobs lost to the pandemic — at least temporarily — the outlook remains uncertain.

Still, Ian Shepherdson of Pantheon Macroeconomics said, “Housing construction likely has hit bottom.”

“A steep drop in activity was inevitable given the lockdowns, but we think these numbers will mark the floor; May will be better, and June better still,” he said in an analysis, noting that mortgage applications had picked up, recovering more than half the pandemic-related declines.

read more…

afp.com

Manhattan real estate contracts plunge 84% | Armonk Real Estate

  • There were a total of 160 contracts signed in May for Manhattan apartments, compared with 992 in May of 2019, according to UrbdanDigs.
  • The number of new listings has also plummeted, down 71% to 574, as sellers decide to keep their properties off the market until the city starts to reopen.
  • The pain in Manhattan real estate will be felt most at the top — where an oversupply of pricey new condo towers and penthouses were already weighing on prices.
A view of 432 Park Avenue October 15, 2104 the day after it earned the distinction of being the country's tallest residential skyscraper.

A view of 432 Park Avenue October 15, 2104 the day after it earned the distinction of being the country’s tallest residential skyscraper.Timothy A. Clary | AFP | Getty Images

The number of real estate contracts signed for Manhattan apartments plunged 84% in May compared with last year, as shutdowns to prevent the spread of Covid-19 and protests following the death of George Floyd,  effectively paralyzed the market.

There were a total of 160 contracts signed in May, compared with 992 in May of 2019, according to UrbdanDigs. The number of new listings has also plummeted, down 71% to 574, as sellers decide to keep their properties off the market until the city starts to reopen.

The pain in Manhattan real estate will be felt most at the top — where an oversupply of pricey new condo towers and penthouses were already weighing on prices. For apartments priced over $4 million, there were only 16 contracts signed in May for a total of $100 million — a nearly 90% decline from last May when 111 contracts were signed totaling $1.1 billion, according to the Olshan Report.

One of the most expensive deals in May, a contract for the sale of a co-op on Park Avenue that had been listed for $6.95 million, was sold by an owner who decided to move with his family to Scarsdale, New York in the wake of the coroanvirus pandemic, according to the Olshan Report.

While data on New York City residents moving to the suburbs is still largely anecdotal, there are some early signs of urban flight to surrounding suburbs. UrbanDigs did an analysis looking at “relative demand,” which it defines as new sales contracts divided by new listings.

The analysis found that while demand was down sharply in Manhattan, demand increased in Westchester County in New York, Greenwich, Connecticut, and in Bergen and Monmouth counties in New Jersey.

“In the near term, continued slack demand for Manhattan could create an oversupply situation, implying lower prices ahead, and increased suburban demand could create a supply crunch, pushing up prices,” according to the UrbanDigs report. “In the meantime, it remains to be seen if the easing of stay-at-home restrictions in Manhattan will unlock pent-up demand, but with the move to the suburbs already in place and further entrenched by the COVID-19 pandemic, any pickup in Manhattan demand seems unlikely to reverse the trend.”

Manhattan real estate brokers say they remain optimistic about deals once the city reopens and unleashes pent-up demand among sellers and deal-hungry buyers. Brokers have been unable to show apartments or hold open houses for buyers since March. While no date has been set for real estate to reopen as part of New York’s Phase 2, they are expecting a reopening around June 22.

Until there are more deals, brokers say they won’t know where prices in Manhattan will land or how much they will fall over time.

“I have a lot of people waiting to sell and a lot of people waiting to buy,” said Lauren Muss, a broker with Douglas Elliman. “It’s a question of when we can do business again.”

read more…

cnbc.com

HGAR Covid-19 update | Armonk Real Estate


REGIONAL NEWS
COVID Crisis Accelerates Realtors’ Use of Tech in Mid-HudsonWith the real estate transaction process still done for the most part on a virtual basis, sales volume has slowed but has not stopped entirely.
Realtors are using technology tools such as Zoom, FaceTime, Skype and DocuSign, to get a deal to closing. Once the Mid-Hudson enters phase two of the reopening, many of the elements of a transaction can be done on a face-to-face basis with mandated safe practices. However, the tech tools now being employed may become common practice to many Realtors.
“The COVID-19 situation has accelerated the use of technologies and practices that the (real estate) industry hadn’t fully embraced,” said Katheryn DeClerck, an associate broker with Better Homes and Gardens/Rand Realty’s Goshen office. “People, who would’ve been out of the housing market in March and April, are going to hit it as soon as they can. They’re already out willing to see properties virtually.” See full Middletown Times-Herald Record story.

Business Council Task Force Issues Strategies, Recommendations to Assist in Westchester’s Economic Recovery from PandemicThe Business Council of Westchester issued an extensive list of strategies and recommendations to assist the state and county in their reemergence from the pandemic. The report offers recommendations from the 46 members of the BCW Westchester Economic Recovery Task Force who represent a wide range of industry sectors in the county including: Arts, Biotech, Energy/Environment; Entertainment, Hospitality, Transportation, Finance, Healthcare, Higher Education, Municipalities, Not-for-Profits, Professional Services, Real Estate Brokerage and Construction, Retail and Small Business.
In the report, among its recommendations concerning the real estate brokerage industry, the task force recommends extending tax credits to developers/owners who make capital expenditures for new construction and to owners/ leaseholders of older properties that install modern HVAC in their buildings with improved air circulation in tenant spaces and other common areas in multi‐tenanted buildings.
The task force also stated that it is “Vital for real estate agents to be allowed to practice in person services with appropriate health and safety protocols and social distancing to minimize contact.”
The full report, which is the first of several to be prepared by the task force, is available online at thebcw.org
NEW YORK STATE NEWS
Western NY Expected to Enter Phase 2 Tomorrow; Capital District on Track for Phase 2 on WednesdayGov. Andrew Cuomo in his daily COVID-19 Update briefing today said that the Western New York region is expected to begin phase two of the reopening process tomorrow.
He added that the Capital District is on track to enter phase two of the reopening on Wednesday. In addition, New York City is eligible to enter phase one of the reopening on Monday, June 8, while the Mid-Hudson is eligible to enter phase two on Tuesday, June 9.
Referencing the protests over the death of George Floyd, the governor expressed concern that the mass gatherings throughout the state may exacerbate the spread of COVID-19 and possibly set back the state’s efforts to restart its economy. See story CBSNews.com.
Assembly Speaker Says Not So Fast to Major Budget CutsNew York State Assembly Speaker Carl Heastie (D-Bronx) says Assembly members are prepared to return to Albany in the coming weeks to block potential major cuts to education, local governments, and hospitals that might be proposed by Gov. Andrew Cuomo in response to the lack of assistance from the federal government.
The governor has been warning that without proper funding from the federal government, he may be forced to cut spending in those areas by 20%.
“I think these cuts are unacceptable, and I think you would see the Legislature look to respond,” Heastie said. “None of us can fathom 20% cuts to education. Those are cuts that I don’t think we’ve ever imagined, we’ve ever seen, in recent times. We cannot tolerate those types of cuts,” Click to see Albany Democrat & Chronicle story.

NATIONAL NEWS
Will Civil Rights Protests Spark a Second Wave of COVID-19?Mass protests over police brutality and the recent death of George Floyd are worrying some public health officials that coronavirus cases could rise due to the mass gatherings.
Los Angeles Mayor Eric Garcetti warned that the protests could become “super-spreader events,” while Gov. Larry Hogan of Maryland expressed concern that his state would see a spike in cases in about two weeks. Atlanta’s Mayor Keisha Lance Bottoms advised people who were out protesting “to go get a COVID test this week.”
“The outdoor air dilutes the virus and reduces the infectious dose that might be out there, and if there are breezes blowing, that further dilutes the virus in the air,” said Dr. William Schaffner, an infectious disease expert at Vanderbilt University. “There was literally a lot of running around, which means they’re exhaling more profoundly, but also passing each other very quickly.” See full New York Times story.

PREPARING FOR PHASE TWO
The following are links to guidance from New York State for real estate firms reopening in Phase Two. The Mid-Hudson region is still in Phase One of the process that has all but shut down the real estate industry since late March. It could qualify for Phase Two reopening beginning on June 9.
Reopening NY: Real Estate Guidelines for Employers and EmployeesNYS Dept. of Health: Interim Guidance for Real Estate Services during the COVID-19 Public Health EmergencyNYS Business Reopening Safety Plan Template
The following are links to guidance from New York State for building management companies reopening once the Mid-Hudson enters Phase Two:
Commercial Building Management Guidelines for Employers and EmployeesThis Interim Guidance for Commercial Building Management during the COVID-19 Public Health EmergencyNYS Dept. of HealthNY FORWARD Safety Plan Template
Please continue to check for updates on HGAR.com COVID-19 Resources.
Stay safe and stay well.
Sincerely,
Richard Hagerty