The threat looming from COVID-19 hasn't stopped the business of buying and selling homes.

The real-estate market stood still for two days in late March after Gov. Jay Inslee issued his “Stay Home, Stay Healthy” order on March 24. But it quickly swung back on March 28 as the governor adjusted the original guidelines to allow real estate agents to show homes to buyers.

“The public is just coming back, realizing the real estate market is in motion,” said J. Lennox Scott, chairman and CEO of John L Scott Real Estate.

Year-over year statistics compiled by the Northwest Multiple Listing Service show listings, pending sales and closed sales were down in March 2020 from March 2019. Total active listings, at 401, are down just over 10% year over year. Pending sales, at 459, were down nearly 7%. Closed sales, at 308, were down only slightly, at nearly 3%.

In Kitsap County, there is less buying and less selling, said Neil Krech, broker at Every Door Real Estate, but the ratio remains similar to before COVID-19. Many of the conditions that existed before the pandemic persist: There’s a shortage of homes listed under $300,000, and when there is one listed, it is sold quickly. It's still a seller's market, he said.

Realtors expect the effect of the pandemic on home sales will be more evident in April and May, as leery homebuyers are hesitant to venture out to look at homes amid the governor's stay-at-home order.

Kitsap's market buffeted by essential workers

But even amid the pandemic, Kitsap is unique in that many of its workers are still going to work: shipyard, Navy and health care workers are deemed “essential," said Frank Leach broker/owner of RE/MAX Platinum Services in Silverdale. Leach is optimistic about how Kitsap’s market will fare among the crisis.

Julie Cooper, sales manager and loan officer at Fairway Independent Mortgage, agrees. Her clients include those with jobs who need homes, even amid the pandemic. She is working with a borrower who is moving to Kitsap County to work at Harrison Medical Center.

“She needs to be in a home by the end of June; in the end, it's going to happen,” Cooper said.

Cooper echoes others who point out that affordable homes are still scarce

“As soon as a property comes on the market, it goes off,” she said.

The median price for homes purchased in March in Kitsap County was $385,000, up more than 7% from March 2019.

Michelle Davis listed her West Bremerton home on April 8 for $320,000 and accepted offers until April 11. She received eight offers and accepted one over the weekend. Her home is now under contract.

Davis, whose family has purchased a home in Virginia ahead of relocation, credited her agent, Ida Bear of Windermere Real Estate, in the home's quick sale, even amid the pandemic. But she acknowledges the low number of listings put her at an advantage.

Another sweetener for homebuyers is historically low interest rates — hovering around 3%. Krech said he heard of a 2.75% rate for a Federal Housing Administration loan the other day.

“You can imagine with this backlog of buyers with historically low rates waiting for the next home to come on market,” Scott said. “You can get your home sold today.”

Precautions taken during pandemic

It's also an unusual time to be selling a house.

Open houses were stopped weeks ago when gatherings were limited, and showings are restricted to serious buyers.

Guidelines call for homes to be shown with just one client at a time, accompanied by the agent showing the home.

Sellers and agents are thoroughly cleaning between showings. Some agents ask the seller to leave all doors open and lights on to prevent having to touch surfaces.

“I wear a mask, shoe covers and gloves to add the extra comfort for my clients and the homeowners,” Krech said. “I have seen a lot of homes with sanitizers and sprays right at the front door, too.”

With restaurants, stores and parks closed, people who are selling their homes face some difficulty when interested buyers come to look. Davis had to figure out a way to keep her family out of the home while it was being shown.

“We have been hanging out in my minivan and having picnics in the car or just driving around,” she said. “The first day was so busy we were out of the house for hours."

Virtual home tours have also become popular. Once used exclusively by buyers looking in another state, people are using them to look at properties close by.

Scott says technology has played a huge role in both showing homes and marketing them to potential buyers during the pandemic. He hasn’t heard of many deciding to purchase sight-unseen based on a virtual tour.

Sitting it out, for now

Other interested buyers have decided to step back during the pandemic.

Monica and Brian Sniff, who live in Manette, were looking for a new home — primarily in Gig Harbor. But they have decided to stop and see what the impact of COVID-19 on the market will be. Brian wonders if prices will continue to go up because of less inventory, or if prices will drop because of fewer buyers in a pandemic economy.

Kitsap County had 1.3 months of inventory in March. A balanced market that favors neither the buyer or seller typically has four to six months of inventory.

Brian Sniff said he hasn’t noticed much impact yet: homes prices remain set at where they were before COVID-19. Sniff previously worked in real estate finance, which is helping him determine when the right time to buy is.

“I saw these trends come and go, but nothing like this caused by some external issue,” he said. “The impact of maybe 25 million people becoming unemployed isn’t going to easily rectify itself.”

Sniff anticipates the key time for them to buy will be in a year. He said not everything will return to normal, and unfortunately, some will be forced to sell their homes because of lack of income.

“There are going to be a lot of homes in our price range,” he said. “I don’t mean to take advantage of it, that’s how our economy works.”

Those not in the market for buying a home are still eying those historically low interest rates, Cooper said. Rates are low, though Cooper expects them to drop even lower as a response to the economy and mass unemployment. She’s telling her clients if they’re considering refinancing to get the paperwork in now to be ready for even lower rates.

“We’re in such a weird place in our world,” Cooper said, comparing the economy to 2008 at the dawn of the Great Recession. She said one way to recover is to artificially stimulate the economy by lowering mortgage rates.