A directive from the Empire State Development Corporation, and passed along from the New York State … [+]
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Less than two weeks after New York Governor Andrew Cuomo ordered real estate agents to stop showing homes as part of a stay-home order, the state seemed to reverse course late Wednesday and allow home showings, as well as appraisal services and home inspections, to continue with social distancing.
The move comes after the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) deemed real estate services to be an essential service in a memo published earlier this week.
Real estate trade groups appeared to jump on the designation, with the New York State Association of REALTORS yesterday publishing a clarification from the Empire State Development agency noting that “residential and commercial showings along with back office real estate work, appraisal services and home inspections are essential real estate functions effective immediately.”
“Our industry has been given a great responsibility in this time of crisis to help meet the needs of New York’s residential and commercial property buyers and owners, and the overall welfare of the local and state economy,” said NYSAR President Jennifer Stevenson said in a statement. “But our priority must be to the safety of our customers, clients and indeed for ourselves, as we all continue to practice socially responsible distancing that is helping to flatten the curve during this national health crisis. Our mantra must be ‘safety first, work second.’”
However, as of Thursday morning, the announcement appeared to be premature and sewed confusion among those in the industry.
James Whelan, the president of the REBNY, emailed members Thursday morning, saying that the guidelines had not been published by the Empire State Development Corporation.
“Please note: these guidelines are not yet final and have not been published by the Empire State Development Corporation (ESDC),” Whelan wrote. “All previous executive orders and guidelines remain in effect. We are monitoring this closely and will provide an update as soon as we know more from our authorities.”
The decision coincided with first quarter results for Manhattan that showed a premature end to the spring selling market, with listing inventory falling more than 8% in the first quarter for the first time since 2007, according to the report by Douglas Elliman Real Estate.
Jonathan Miller, chief executive of Manhattan appraisal firm Miller Samuel, which produced the report in conjunction with Douglas Elliman, said the announcement seemed premature, and that there would be no advantage to putting a home on the market in the midst of the coronavirus pandemic.
“The unfortunate result of this decision is that the less real estate agents and market participants stay in their homes, the more damage there will be to the housing market,” Miller said.