Coronavirus Impact On Real Estate


Radio Show & Podcast Transcript:

Speaker 1:

Now, Talk Real Estate sponsored by Boston Connect Real Estate Services.

Sharon McNamara:

Hi, I’m Sharon McNamara and you are listening to Talk Real Estate. Let me share a little bit about my background before we get started. I am the broker-owner of Boston Connect Real Estate, located on the South Shore. I have been working as a full-time realtor and sales and marketing consultant for home buyers and home sellers for the past 19 years. My unique approach to assisting my clients to the next chapter of their lives is driven by being a team player and by offering them continuous training, education, advising, and mentoring. Every week I will be providing you with real estate topics, ranging from home buyer and home seller advice. Legal matters, insurance binders, flood insurance concerns, home inspection questions, environmental worries like radon, lead paint and mold. Mortgages and loan programs, staging tips and ideas, real estate contracts, market trends, home values and more. It’s a talk radio show and you can follow along online. If you have any questions during the show, please call 781-837-4900, we’d love to talk real estate. If you missed any of our shows, you can listen on my podcast at talkrealestateroundtable.com if you would like a one on one consultation with me regarding your home sale or your home purchase, you can connect with me anytime at bostonconnect.com or 781-826-8000. Now, sit back, relax, take good notes and let’s talk real estate.

Sharon McNamara:

Hello to all my South Shore. neighbors, this is Sharon McNamara and you are, of course, listening to Real Estate Radio and Roundtable here with my crew. I got my crew here tonight. How are you, Mary Baker?

Mary Baker:

I’m wonderful, how are you?

Sharon McNamara:

Did I make you laugh?

Mary Baker:

You did, I like being part of the crew.

Sharon McNamara:

Yeah, part of the crew. We also have Melissa Wallace with us. We are in our in-home studio here at Boston Connect Real Estate, who is the sponsor of this radio show that you’re listening to on WATD. We’re more than thrilled to know that the one and only Benjamin is back. Hello, Ben.

Benjamin:

Well, hello, ladies, how are you?

Sharon McNamara:

Good. We’re so happy to have you back.

Benjamin:

It’s good to be back.

Sharon McNamara:

Yeah, I know you’ve been busy with the hockey season. So hey, what do you think about that whole situation that happened at the Bog?

Benjamin:

Obviously, an ongoing thing. But let me just say there is absolutely zero room in the game or in life, to teach children things like that. I also don’t think we should be putting children in charge of children on that note.

Sharon McNamara:

Exactly.

Mary Baker:

Well said.

Sharon McNamara:

Well said I was listening to WATD News this morning because that’s what I do. I heard the name of the ref and I just happened to know him. So I reached out to him and it was somebody from [Southie 00:02:50] that I grew up with. I hung out with his brother if you know what I mean.

Mary Baker:

Hang out as in dating when you were six?

Sharon McNamara:

Hangout, yeah.

Mary Baker:

Okay.

Sharon McNamara:

Yeah, so I reached out to him to see how he was doing and he said that all as well.

Benjamin:

Yeah, honestly, I don’t think he did anything wrong. The guy came at him, he defended himself and that was that. Some people have a different opinion but it all worked out the way it was supposed to, I guess.

Sharon McNamara:

Well, and that’s the thing, though, is when you’re attacked and sort of off guard, it makes you react. If you’re prepared for something like that, maybe he would have acted differently. Not maybe retaliated the way he did. But when someone spits something at you, then you need to react.

Benjamin:

Yeah, that’s an act of aggression. Wars have been started over less.

Sharon McNamara:

Yes, absolutely.

Mary Baker:

I feel like I completely missed out on this because if somebody ever came close to spitting in my face-

Sharon McNamara:

Terrible.

Benjamin:

You’d be surprised what human beings are capable of sometimes. But like I said, I’m glad that now it’s up to light. Guilty parties are guilty and we all know it.

Sharon McNamara:

Yes, absolutely. So tonight, I don’t know if you know what our show is about. Have you heard?

Benjamin:

Is bird the word?

Sharon McNamara:

No. So tonight, our show is going to be on the impacts of the Coronavirus in the real estate market. So we thought with everything going on, we should talk about to that so people can see what’s going on from our perspective with everything. So we think it’s a really great topic. One of the things we’re going to be doing tonight, though, is we are going to be calling in some guests. They are going to be joining us. So tonight, Alyssa McNamara Reed, of course, from McNamara on Money here on WATD every Saturday morning from 8:00 to 10:00. Every Sunday morning from 7:30 to 9:30. She is also a partner at McNamara Financial right here in Marshfield. She’s going to be joining us and just to sort of filling us in on what the impacts of the market are. The stock market, what’s happening to that, what’s happened to everything there and how that impacts the rates for mortgages. The mortgage rates have dropped. Speaking of mortgages, we’re also going to have a call in. I’m not sure if it’s going To be with George Post or Jazmine Glasgow at this point right now. But one of the two from Maritime Mortgage will be calling in. They’ll be also, we’ll be discussing with them what impacts they’re seeing.

Sharon McNamara:

We’re going to end tonight, so this is every 15 minutes. We’re going to talk with Emmanuel Ebot from-

Mary Baker:

A different preferred professional.

Sharon McNamara:

A different preferred professional, yes.

Mary Baker:

Say that five times.

Sharon McNamara:

We had a hard time with that once before. But we’re going to talk to him and his office. Again, he’s from Stiles Associates. Again, its Attorney Emmanuel Ebot from Stiles Law right here in Marshfield as well. Mark Stiles won’t be able to make it with us tonight because he’s on the zoning board for the town of Marshfield. So he will be at a zoning board meeting tonight. I do not miss those days when I was on the zoning board in Pembroke.

Mary Baker:

Yeah.

Sharon McNamara:

It was controversial sometimes, especially when someone tried to put it tattoo parlor. You would have thought for crying out loud, what’s the big deal?

Mary Baker:

I went to that tattoo parlor.

Sharon McNamara:

Yeah, you did?

Mary Baker:

Yeah.

Sharon McNamara:

Good. All right, we’ll talk about that another time. But I’m really hoping that this next guest will be able to answer a few questions for me too. The Coronavirus may be impacting the roads. I don’t know what it’s doing tonight. But we will find out from Lisa DeMilo from the WATD traffic center. Hey, Lisa, it’s Sharon.

Lisa DeMilo:

Hey, Sharon. Sounds like a really interesting show. They all sound good, but this one is fascinating. Good take on the Coronavirus.

Sharon McNamara:

Yes, and after you do your report, I’m hoping that you can stay with us for a couple minutes. Can you do that?

Lisa DeMilo:

Okay. Yeah, sure.

Sharon McNamara:

All right.

Lisa DeMilo:

So the expressway southbound is inching along from the tunnel to South Bay. You’re backing it from Granite Ave to the Split and it stays like that down past Route 37. Northbound is okay, all the way up past Columbia Road. Route3 South is backed up a bit coming off the expressway and Route 24 South isn’t bad. This report is answered by the FCC. Some of your local TV channels missing, find them again by re-scanning your TV now. Learn more @fcc.gov/tvrescan. Traffic on the nines every morning. I’m Lisa DeMilo in the WATD traffic center.

Speaker 1:

We now return to Talk Real Estate sponsored by Boston Connect Real Estate Services on 95.9 WATD.

Sharon McNamara:

We’re back, thank you to our listeners for sticking with us and listening to Lisa DeMilo there. I asked her to stay on for a couple more minutes. I can never get enough of Lisa DeMilo from the WATD traffic center.

Lisa DeMilo:

Can you believe we’ve never met?

Sharon McNamara:

I cannot believe that.

Lisa DeMilo:

It’s crazy, we have to do it.

Sharon McNamara:

But if you walked by us at Stop and Shop, we wouldn’t know who you are.

Mary Baker:

I know, we wouldn’t even know who you are.

Lisa DeMilo:

I know.

Sharon McNamara:

I’m going to have to creep on you a little bit maybe to see what you look like. But we’re talking about the impacts of the Coronavirus, how it deals with real estate. But I’m sort of curious. Are you seeing any changes on the road with more people staying and working from home? I just learned today that Harvard and some of the bigger schools are now doing tele-communicating or whatever for all their classes. So what are you seeing?

Lisa DeMilo:

Up until today, I had not noticed much of an impact. But I have to say was extremely light today. The expressway is kind of the rule of thumb, different avenue that where it’s just always busy. But most of the other roads were very quiet. Route3 South was very quiet and all over Boston was quiet. I have to watch a lot of maps other than the South Shore and I can see such a big difference. There was very little traffic and very little crashes as a result. When things are bumper to bumper, that’s when you usually find a crash. So it’s an easy traffic day today and it was the first one. I didn’t even make that connection until you mentioned it.

Sharon McNamara:

Well, that’s what I’m here for. So feel free to use our theory. But yeah, I was really going to[inaudible 00:09:05].

Lisa DeMilo:

You know what, I’m going to keep an eye on that and spread that around the traffic center and see what everybody else thinks.

Benjamin:

Don’t spread it around too far, all right?

Sharon McNamara:

Yeah, you heard it here first on WATD 95.9. WATD, we already said that but Lisa DeMilo, the one and only Lisa DeMilo breaking news. Well, Lisa, thanks so much for staying a couple extra minutes.

Lisa DeMilo:

No worries.

Sharon McNamara:

I know you’re busy and you have other reports to do.

Lisa DeMilo:

Okey-dokey.

Sharon McNamara:

We’ll ask you next week too, to hear what you’re seeing.

Lisa DeMilo:

I’m going to keep an eye on it all week and I’ll have an update for you.

Sharon McNamara:

All right, perfect. Thanks so much, Lisa, we appreciate you.

Lisa DeMilo:

Applause.

Sharon McNamara:

It’s a standing ovation, I think actually. So you just heard from Lisa DeMilo, she’s from the WATD traffic center. We were just wondering what is the impact? I think that this Coronavirus and the media hype about it is really starting to stir the energy with everybody. So that’s what our topic is about tonight. If you have any calls, is anyone want to take this next part?

Mary Baker:

So, guys, if you have any calls you can call us at the station and Ben will be happy to answer your questions. So we are at 781-837-4900. That’s 781-837-4900. You can also catch us on Facebook live. Tonight we are on all of The Connect pages but we are starting from Sharon’s page. Then Melissa and I have also shared it and we’re on Pembroke Connect, Hanover Connect, Dorchester Connect, whatever you can find. If you guys have a topic for us that you’d want us to go over, please feel free to send it over to brokerteam@bostonconnect.com and we’ll try and get you guys the show of your own and give you a shout out.

Sharon McNamara:

Perfect and one thing I do want to mention, the show tonight is sponsored by Boston Connect Real Estate. So if you would like to connect with us, the McNamara broker team here at Boston Connect Real Estate, you can reach us on any of our professional real estate sales and marketing experts here at Boston Connect Real Estate. By going to bostonconnect.com under the tab meet our agents or meet the team. You will be able to find all the information for all of our agents. So, Mel, what do you think?

Melissa Wallace:

Hi. I’m finally here.

Sharon McNamara:

Melissa has joined us and Melissa has all-

Melissa Wallace:

Melissa has entered the room.

Sharon McNamara:

Yeah, she has all the hard work. So she gets us up on Facebook and we’ve been doing some Instagram things and all that. Our first phone call is going to be coming in at about 6:30. That’s going to be with Alyssa McNamara Reed. Again, he is from McNamara Financial and right here in Marshfield. Also, she’s on McNamara Money, which is on WATD every weekend, Saturday and Sunday. So you can catch her show. I know that they have podcasts as well. So, mcnamarafinancial.com. So, Mary, let’s get into us talking a little bit. We’re going to ask three basic questions of all of our guests tonight. So the questions that we’re going to ask them is do you currently feel an impact on the Coronavirus? Do you suspect that you will feel any further impact on the Coronavirus? Words have wisdom for our listeners for continued confidence in the real estate market.

Melissa Wallace:

I like those.

Sharon McNamara:

Yeah. Yeah, well, it’s interesting because right before we got on the air tonight, Melissa noticed that we got an email from the Greater Boston Association of Realtors, which were all a part of. We have local board here, social realtors. But I’m a part of all of the local ones and a lot of our agents happen to be part of the Boston Board. Just because it’s something different and it’s just interesting to be part of several different boards. They sent an email and I think one of the interesting topics, do you want to like name a couple things? So this is what they’re saying to us as real estate agents as a board, what we have to be aware of because of fair housing laws.

Melissa Wallace:

Yeah. So the three of us are a part of the Greater Boston Board. I personally think that they put out some really great content and they tried to be very on-trend. Obviously, right now everybody is talking about the Coronavirus. They put this out there today just saying, “Do we have a right to ask people have they traveled recently? Do they have any respiratory illnesses?” I wouldn’t really normally think to ask these questions because of fair housing. But according to Greater Boston, we are allowed to ask these questions, as long as we’re asking everybody. So we’re not singling out any person.

Sharon McNamara:

Yeah.

Melissa Wallace:

Well-

Mary Baker:

I think it’s very easy to do. Sorry, didn’t mean to cut you off.

Melissa Wallace:

No, that’s fine.

Mary Baker:

If people are entering and just open houses is something that we’re doing constantly, it’s the same three questions that you’re asking everybody. You ask them to sign in the same way. Do I think people would be a little bit caught off guard if we’re like, “Hey, have you been out of the country anytime recently? Welcome to this house but you can’t go in until you answer that question. If you did, maybe you have to leave.”

Melissa Wallace:

Yeah.

Mary Baker:

So there’s a fine line in my opinion between privacy and-

Melissa Wallace:

I think that it’s all in the way that you frame the question. I’m pretty confident in our ability to not cross the line with our housing.

Mary Baker:

That’s not how I would do it.

Melissa Wallace:

I personally would sort of make a little bit of a joke out of it and be like, “Hey, would you like to some hand sanitizer?” As everybody.

Sharon McNamara:

Well, Melissa, that’s what I was going to say. Mary actually did that this weekend. Instead of shaking hands, she just gave everybody a squirt.

Mary Baker:

I was just making it a joke, you’re just being hyper-conscious.

Melissa Wallace:

We can even scoop up a bunch of little miniature hand sanitizers and start giving them out at our open houses as little gifts.

Mary Baker:

I don’t know, are those even available?

Melissa Wallace:

It’s a hot commodity right now.

Sharon McNamara:

Yeah, it is very much.

Mary Baker:

You can get them on Amazon.

Sharon McNamara:

You can’t, they’re asking $50 for one little bottle.

Mary Baker:

Really?

Sharon McNamara:

Yeah. So I thought that that was really interesting because I did hear that some of the impacts that we’re having from a business standpoint and maybe Alyssa can talk about this a little bit more. Is that certain areas are really feeling the impact from it. Unfortunately, Chinatown in Boston, I heard is having a very, very difficult time. It’s because of that Asian population, the Coronavirus starting in China and working its way all over the world now. That really sort of it impacts everybody but it really makes me sad. To think, as a population that you’re going to just think of… You’re going to see somebody in a certain culture-

Mary Baker:

It’s a complete and total misconception.

Sharon McNamara:

Exactly. So you have to be just as careful in Chinatown as you do in the North End.

Mary Baker:

In Germantown.

Sharon McNamara:

In Germantown, wherever you are. But one of the things that I thought was interesting is my daughter, Casey and her boyfriend, Dustin are actually in Paris. They left last Wednesday and we were nervous about that and the impacts of it. But then I went to Nashville and I called in Melissa last week to you and Kristin. I made it through the tornado but then when I got home, what did I hear? That somebody took a direct flight from Logan Airport to Nashville. I was like, all right but when was that because I did the same thing on Monday? So was it on my flight? But they didn’t give any of that information out. So I actually called all the hotlines. They said, “If you were in that vicinity, they would have called you.”

Sharon McNamara:

So again, you don’t have to go to Paris to get at this point.

Mary Baker:

It’s here.

Sharon McNamara:

It’s here.

Melissa Wallace:

It’s all over the world.

Sharon McNamara:

Yes.

Mary Baker:

It really is. So that’s why we wanted to do this topic tonight is because it’s so prevalent in what everybody is going through right now.

Sharon McNamara:

So some of the impacts and we’ll talk about this when we have our co-host or well, our guest on with us. Is the mortgage rates right now are dropping significantly and some nice data that I was able to find was talking about… We’re going to talk about previous viruses and how that impacted the stock market. But one of the things I wanted to talk about is how the interest rates have dropped so significantly. But if people are on the fence about renting versus buying… I’m just wondering, Ben did Alyssa call?

Benjamin:

I was going to say you’re talking about people being on the fence but what if they’re on the phone?

Sharon McNamara:

Perfect. Well, that’s the person that we want to talk to you right now. So I believe we have Alyssa McNamara Reed with us from McNamara Financial.

Alyssa McNamara Reed:

Yes, we do.

Sharon McNamara:

Hello.

Alyssa McNamara Reed:

Hi, how are you?

Sharon McNamara:

Hi.

Melissa Wallace:

Hey, Alyssa.

Sharon McNamara:

We’re doing great.

Alyssa McNamara Reed:

Hi guys.

Sharon McNamara:

So, you know what? This is just a topic, I got my statement in the mail this week and I promised myself I wouldn’t open it, I wouldn’t open it, I wouldn’t open it and I opened it. So yeah, things have definitely dropped. But we’re sort of curious, what are you seeing as an impact from the Coronavirus? But first of all, tell our listeners who you are and what your job is?

Alyssa McNamara Reed:

Sure. So my name is Alyssa McNamara Reed, I’m with McNamara Financial in Marshfield. We are an investment advisory and financial planning firm. So I’m a financial advisor and a certified financial planner. This has been a busy few weeks for us because we manage assets for our clients and over time, we try to prepare them and train them. That these temporary downturns are normal and they happen once in a while. But depending on age and circumstances, sometimes people can’t help but panic a little bit. So we’ve been very busy responding to calls and emails and just helping to reassure people. That in investment when you’re an investor, you have a long-time horizon. What’s happening this week or this month, in the grand scheme of your investment life is a pretty short period of time and just a blip. So that’s… If you want me to talk specifically about the Coronavirus, I can do that. Not from a health perspective but from a market perspective.

Sharon McNamara:

Yeah, from the market perspective. Then one of the things we were talking a little bit earlier that I’m interested in is the stock market reaction to previous viruses and what you’ve seen with that.

Alyssa McNamara Reed:

Yeah, so with this particular health crisis, it’s certainly has affected business. People have been unable to get to work, either unwilling or unable to get to work and all over the world. So it certainly affected business production, hopefully for a relatively short period of time. Then I think people are just… Couple that with the fact that I think people are just nervous about how much worse can the outbreak get? How many more people will it affect and things like that? So I think people are just kind of nervous in general about the future. So that and that has translated to people when investors get nervous, their gut reaction, which most of the time is the wrong one. Is to want to sell off their positions and move their assets to something safer. So what happens is the reason market’s decline, is that people are selling off some of their stock positions because they’re nervous. They’re moving their assets to something more stable, like a treasury, for example or a bond position or cash.

Alyssa McNamara Reed:

So we’ve seen the yield on the Treasury fall because when there’s a lot of people buying up treasuries and people flocking to these safer investments, then we see the yields fall. So we’ve seen a significant drop in the 30-year Treasury rate. That’s just because is people are nervous and they’re selling off stocks and they’re moving to more stable investments. Which everyone’s situation is different but generally speaking, that’s not what you want to do. If you’re a long-term investor, you don’t want to sell off your stock positions when they’re temporarily down in value. So I can’t give specific investment advice on the radio but, in general, my general advice is don’t look at your statements, close your eyes, have faith in the future. Hoping that this too shall pass as all down markets in the past have.

Sharon McNamara:

Yeah. Well, isn’t this a great time to buy if things are low?

Alyssa McNamara Reed:

Absolutely, yeah. So for people, again, that do have a long-term investment time horizon and the long time before they’re going to need funds. You never want to throw money into the stock market when you need it next week or next month or even next year. But yes, for people that have money that they can tuck away for a long period of time, this is a great buying opportunity. Stocks are essentially on sale right now, US stocks and international stocks. That people can scoop up shares at a lower price than they were about a month ago. Prices, the market could continue to drop from here. There’s a lot of people that think that it will continue to go a bit lower from here. So could there be a better buying opportunity in the future? Sure but it’s certainly, is a buying opportunity now.

Alyssa McNamara Reed:

The US market is down I think after today’s close like 11% or 12% from a tie in February. It’s just moving very quickly, we’ve had a down 7% and then up 5% and swings in between. So it’s definitely moving very quickly.

Sharon McNamara:

Do you think that this has a lot to do with media hype? Does stocks work that way as well that everyone’s hearing it, hearing it so people are just like sell, sell, sell?

Alyssa McNamara Reed:

Absolutely. Yeah, so I think the media certainly contributes to the reactions that people have and the media creates a lot of hype. They want viewership and they want ratings. Certainly, they create a lot of hype around a lot of things. When people listen to that repeatedly, they can’t help but worry about their money. Money will always be emotional for people. It just is, it always will be. Even though, a good investor takes the emotion out of investing, it’s just really hard to do in reality. So people yeah, I absolutely think it’s… The people that don’t even know what the Coronavirus is and have no idea what the market is doing are way better off in the long run. They’re not going to make a mistake with their investments and they’ll be better off in the long-term because of it.

Sharon McNamara:

So with your position that you have and I know that you take care of everything from me and Mark. I’m just curious, are you constantly looking at those types of things too? Are you saying, perhaps I should make this a little less aggressive? Maybe I should be thinking about this for my clients? Is that something that you wait for your clients to call you?

Alyssa McNamara Reed:

We would like for our clients to reach out to us when things in their lives change, that would translate to a change in their investment objectives. But certainly, we reach out to them periodically to check in and revisit life and things like that. But as it specifically relates to a volatile stock market, I don’t think that people should be changing their investment portfolios as a result of a fluctuating stock market. Especially getting in a time like this when the market is down, it’s kind of feeds your gut reaction to get more conservative. But actually, mathematically-speaking, it’s the wrong thing to do. A good long term investor would actually get a little bit more aggressive in the stock market. But what really what you should do is nothing because a stock market, a temporary fluctuation in the market, it shouldn’t impact your overall investment objective. People should be invested in a suitable portfolio. They should have been invested in a suitable portfolio prior to this downturn. So the people that have large or significant allocations to stocks, those are the people that are seeing the largest downturns right now. But those people if you have a large allocation to stocks, you should have a very long time, like eight, 10, 12 years or more before you need that money.

Alyssa McNamara Reed:

So the people that are seeing the largest swings downward right now should be the people that don’t need their money for years and years and years into the future. By then, the Coronavirus it’s going to be well behind us, hopefully anyway.

Sharon McNamara:

The vaccines work.

Mary Baker:

Yeah, seriously.

Alyssa McNamara Reed:

Yeah.

Sharon McNamara:

That’s where we should be investing, in those companies, right? That’s going to come up with it.

Alyssa McNamara Reed:

Yeah. The people that need their money sooner, people approaching retirement if we’re talking about retirement monies. People in retirement that are drawing money out of their portfolio. Those people should have a lower allocation to stocks anyway. They should be more conservative or moderate risk or something in that realm, at least for some of or most of their dollars. Those are the people that aren’t seeing downturns as significant right now because they’re not fully exposed to the stock market. So I don’t think people should make any changes to their investment allocation or their broad portfolio as a result of this market blip or any other one. You should make a change to your portfolio and your investment allocation based on your life. When you’ll need the assets.

Alyssa McNamara Reed:

So those are real-life decisions and the people that are making changes to their portfolio now. Especially getting more conservative or selling off their portfolio and going to cash or whatever. Those people are acting impulsively and their long-term returns will be negatively affected because of it.

Sharon McNamara:

So let’s talk a little bit about some of it, we talked about this earlier on the phone. About the reaction to previous viruses. What is some of what you saw then and what do you expect to see for the Coronavirus?

Alyssa McNamara Reed:

Right. So what I did find was an article. Hold on, I emailed it to you and then I pulled it up here on my computer, hold on. Okay, I found an article that referenced about a dozen health crises that we’ve had since 1981. So, HIV and AIDS, SARS, Avian Flu, Swine Flu, cholera, Ebola, the Zika Virus and a few others. What this article… This is a marketwatch.com article but the source was the Dow Jones market data. What they did was they were pulling information regarding the performance of the S&P 500, which is like a benchmark for the United States stock market. That’s made up of the 500 biggest companies in the United States or 500 of the biggest companies in the US.

Alyssa McNamara Reed:

So what this article went over was, well, what did the S&P 500 do in terms of performance in the 12 months after the outbreak of all these other health crises in our fairly recent past? There’s about a dozen of them on this list and one, two, three, four, five, six, seven, eight, out of about 12 of these health crises. In the immediate 12 months, post-outbreak had a positive double-digit stock market return. So the point of it is yes, these things, obviously, can be very scary from a health perspective and I understand there’s a lot of deaths. Of course, I’m not trying to downplay any of that. But the point is that generally speaking or at least historically, it has been a relatively short period of downturn in the market. Panic surrounding the outbreak and things like that. Then, at least all throughout past, these things have been contained and dealt with. Then the market has recovered from that and not just in a modest way. A double-digit market return in 12 months is great.

Alyssa McNamara Reed:

So that was kind of the point of the article I found that. There’s a few of those floating out there, I happen to find this one on marketwatch.com. But it’s pretty enlightening, it gives people perspective.

Sharon McNamara:

Yeah. What we’ll do is because I know you did email that to me, we’re going to put together a whole blog post on this entire show. We have a couple other preferred professionals that are going to be joining us tonight as well. So we’ll make sure that we put that information on there. Any final words of wisdom that you want to discuss with our listeners tonight?

Alyssa McNamara Reed:

I would just say if anyone is worried about their money, panicking, not sure what to do. I would say if you have an investment professional or an advisor that you’re working with, I would reach out to that person first and have a conversation. Before you do anything impulsive and sell your portfolio or large parts of it, I would just reach out and have a conversation with your advisor. But generally speaking, like I said if you stop, turn off the news and don’t open up those statements. Have faith in the future and remember that you’re a long-term investor. I said to people that are seeing downturns and right now, the high single digits double-digits in a pretty short period of time. The people that are seeing those significant downturns are the ones that theoretically, have plenty of time to recover from this. I’m not going to call it a loss, I’m going to call it a temporary decline in value of their portfolio.

Sharon McNamara:

Just a temporary setback.

Alyssa McNamara Reed:

Yeah.

Sharon McNamara:

I’m not looking at any of my statements, Alyssa, like hands down. I have a long time to go.

Melissa Wallace:

You have a long time to go, just invest all of our dollars.

Mary Baker:

We trust you.

Alyssa McNamara Reed:

Yeah, that’s what I mean. The people that do have a really long time horizon, the 30 and the 40-somethings and even the 50 somethings that have eight, 10, 12 or more years before they need the money. If we’re talking about retirement money, then it might be a great buying opportunity. So some people that have extra cash in the bank or reserves really is truly extra cash. I’m not saying put all your cash in the stock market. But really people that do have a surplus of their emergency cash. It’s a great opportunity to invest money.

Alyssa McNamara Reed:

It’s a little bit counterintuitive and it can be scary to put money into the market at this time. But stocks are on sale and it can be a great opportunity too to take advantage of.

Sharon McNamara:

That’s awesome. So you want to take that for me?

Mary Baker:

Sure. So, Alyssa, thank you so much for joining us tonight. How can our listeners get in touch with you and also talk about your show that you have on WATD?

Alyssa McNamara Reed:

Yes, thank you. So people can find out more about me at mcnamarafinancial.com. We have offices in Marshfield and also Chelmsford. We also have a radio show on WATD, McNamara On Money that airs on Saturday mornings between 8:00 and 10:00. Also, Sunday mornings, 7:30 to 9:30. We also air on WCAP and lower on the AM station for anyone who’s located a little bit north of here. You can find out more about us again at mcnamarafinancial.com or mcnamaraonmoney.com. Thank you for having me, ladies, have a great rest of yourself.

Mary Baker:

Yeah.

Sharon McNamara:

Bye, Alyssa. Thank you so much.

Mary Baker:

Thank you so much.

Alyssa McNamara Reed:

Good night, bye-bye.

Sharon McNamara:

Good night. So that as Alyssa McNamara Reed from McNamara Financial and she’s so super smart, isn’t she?

Melissa Wallace:

She is, yes.

Mary Baker:

Yeah, she really is. She makes me feel calm and I actually am grasping and understanding financially a lot about the stock market just by listening to her.

Sharon McNamara:

It’s simple. Just don’t open your statements.

Mary Baker:

That’s what I said to you earlier. I should have told her when we were on air that is literally what I said. I said don’t look at it.

Melissa Wallace:

I only know anything when she meets with us.

Sharon McNamara:

Yeah.

Mary Baker:

No, she has a look. She’s like girls, you have a long time.

Melissa Wallace:

Yeah, I have 35 more years.

Mary Baker:

So you could ever think about retiring.

Sharon McNamara:

Well, and the thing is Alyssa had said get in touch with your advisor if you have one. But if you don’t have one, I highly recommend Alyssa McNamara Reed and McNamara Financial.

Mary Baker:

I expected that.

Sharon McNamara:

Yes, of course. So she did give her phone number but once again, Melissa, can you give Alyssa McNamara’s phone number and information? It’s on here, I can get it.

Melissa Wallace:

Yes, I have it.

Sharon McNamara:

Yes. They are I also have a podcast, so if you want to listen to some of the McNamara Money radio shows. You can go to their podcast, which you can get on their website as well, which is mcnamarafinancial.com.

Melissa Wallace:

Yeah. So, Alyssa’s phone number is 781-834-2010, 781-834-2010. You can reach her at Alyssa, A-L-Y-S-S-A @mcnamarafinancial.com.

Sharon McNamara:

Perfect. Ben, I know that we have another caller calling in. Do we have that person yet?

Benjamin:

We do. Here we go.

Sharon McNamara:

Okay, so we have until-

Mary Baker:

It’s George.

Sharon McNamara:

It’s George that we have with us tonight. So can you introduce George, Mary?

Mary Baker:

Hey, George Post from Maritime Mortgage. How are you?

George Post:

How are you doing?

Mary Baker:

Good, long time-

Jazmine Glasgow:

A little bit of surprise.

George Post:

Surprise duo.

Melissa Wallace:

Surprise, it’s Jazmine.

Jazmine Glasgow:

It’s Jazmine here as well.

Sharon McNamara:

We have both of you, yeah.

Mary Baker:

Yeah, so we have George Post and Jazmine Glasgow from Maritime Mortgage. Hey, guys.

Jazmine Glasgow:

Hey.

George Post:

Was that a round of applause? I love that.

Mary Baker:

That is.

Jazmine Glasgow:

That’s fantastic. Now, I’m a little under the weather so I’m sitting in the background here. But I’m the one who has way too much industry facts to sit this one completely out. So I’m going to be slightly fact-checking George, no pressure.

Melissa Wallace:

How convenient is your sickness to our topic?

Mary Baker:

I know, it is.

Jazmine Glasgow:

It’s not the Coronavirus, it is the refinance virus. It is working 20-hour days for two weeks straight. This will do it to you.

Mary Baker:

So rest and relaxation is what the doctor ordered, not hand sanitizer and Clorox, right?

Jazmine Glasgow:

Exactly. Make your own hand sanitizer home people is the ridiculous [inaudible 00:34:43]. That is not the official [inaudible 00:34:46].

George Post:

It’s been too many late nights to like hey, we’re hunkering down, calling the husband or calling the wife. Send pizza and we’re going to be in the office until midnight, I think has officially caught up to Jazmine.

Mary Baker:

I got you.

George Post:

That’s what you’re saying.

Melissa Wallace:

No.

Jazmine Glasgow:

Once you start shopping for market veggie, you know the global economy is kind of gone crazy. But, Sharon, you had started your show saying mortgage rates are low. I wanted to kind of address that because it’s been interesting. This has been a pretty insane last two weeks. If I can just dive right in a little bit about how this virus is affecting everything. I can straight up go to that.

Mary Baker:

Yeah.

Sharon McNamara:

Perfect.

Mary Baker:

That’s actually one of our first topics that we want to say. So our first question for you, guys, is do you currently feel any impact on the Coronavirus in your industry?

Jazmine Glasgow:

Yes. So it’s been kind of madness, the global fear sort of pushing markets down and we started seeing on the stock market. When that happens, everything flows through to the Treasury yield, which is what we typically fall for interest rates. Now when everything started being a complete sell-off and we saw Treasury yield fall, we had an initial huge decrease in rates. That was throughout until yesterday about two o’clock and then investors started panicking. So if you look right now and rates are still again, really low. But if you look right now, all those super-low advertised rates have been removed from the pricing agents.

Mary Baker:

Interesting.

Jazmine Glasgow:

So like the bainbridge.com and then zillow.com, they’re removing them because they don’t know if there are investors that can actually keep up with this much demand. There are trillions of dollars that can be refinanced to a lower rate and there just isn’t capacity. The market cannot uphold this. I have purchased appraisals that are now with a 27-day turn times, which is the longest I’ve ever seen. So what we’re seeing today and the investors start to actually look at everything. Look at what it’s going to cost to operate and to pay the overtime and to keep up with the demands. That if you typically fund like two trillion a month, you can’t reasonably do 11 trillion in two months. So we’re starting to see a pushback on interest rates. I don’t know if it’s going to be a long-term thing because all the indicators that set interest rates like a low Treasury yield, like the Federal Reserve announcing a decreased interest rate. These typical markers will keep rates low. So I don’t know if it’s going to be a temporary push-down where they’re just trying to faze off the flow of refinance applications or if this is an indicator for the next month or so. It’s hard to tell but it’s been an interesting last 36 hours, I’ll say.

Jazmine Glasgow:

So I don’t know that this narrative of crazy low rates is going to be attainable for much longer when people essentially run out of funds and resources.

Melissa Wallace:

What do you think, George? Do you think that will feel a further impact on the Coronavirus or do you think that this is sort of a temporary stance right now with the mortgage industry?

George Post:

The economic impact on this, it’s crazy. I think we’re only just scratching the surface on the implications and what it can mean going forward. Like, Jazmine was saying, the temporary bounce back and interest rates as of yesterday, I think everyone’s kind of pressing pause. Hey, what exactly are we dealing with? So to answer your question, I think we’re going to be in a unique situation, historically unique situation for at least the next couple of months. It’s not just a blip in the radar. Better act now and refinance before the week start. I foresee this being a pretty long-term economic impact.

Jazmine Glasgow:

For sure, especially when we’re in a state of emergency right now, with Governor Baker announcing that today. That’s big and that’s just saying it’s finally reaching our state. So what is it going to mean for employers and for verifications of employment for clients out there shopping? Who’s now doors are shut down if that happens. They’re having to miss work because their kids are home from school. I think this could be a much larger impact and a longer impact as well.

Mary Baker:

Well, that’s a little scary. What do you think? So you mentioned earlier about maybe this could be just putting a temporary pause or maybe trying to deter people from going into that refinance boom because the interest rates are so low. Do you think you’re going to actually see that happen? People are going to try and hold off to refi or you think they’re still going to push forward?

George Post:

Again, I think it’s going to be… I think they just press pause a little bit to deal with the influx, with the just outrageous amount of applications. I think that should ease, especially coming off of the big news coming Thursday, Friday. Then a lot of origination going on over the weekend, where people, that interest sparked and then Monday hit. Now we’re into Tuesday. So I think things will kind of even out a little bit towards the end of the week. But as Jazmine mentioned, the whole system is really jammed up right now. Processors, underwriters, appraisers, everyone’s very busy. On top of what was a very warm winter, the purchase market still is bananas on top of the refinances.

Sharon McNamara:

It’s bananas, is that the professional word we have for that? Bananas.

Jazmine Glasgow:

That is a joint professional opinion, that it’s bananas.

Sharon McNamara:

Well, one of the things, George that I noticed and again, you heard it here first on WATD with us because we are in the know. But I said that our spring market started a lot earlier because the Patriots didn’t make it into the playoffs. So people around here were like all right, football’s over. So let’s buy a house. I had one other question and just so you guys know, we break at seven o’clock. We have no choice, we have to at the top of the hour. We have to do a little bit of a news update with Ben. But we’re going to keep you a little bit longer because we know we went longer with Alyssa. Then after you, we’re going to have Mark Stiles on. I know we could probably take three hours to talk about this topic. But one, I have a couple questions for you real quick. Is one let’s talk numbers. Seriously, guys, like you’re talking it’s lower, it’s lower, it’s lower. Let our listeners know what are the numbers that you’re seeing? What’s the lowest one you’ve seen for a refi and the lowest one you’ve seen for a purchase? I know it has everything to do with a rate, right, with your credit score?

Jazmine Glasgow:

So the rate is based on knowing your credit score, the type of property, single, multifamily, condo. Your ownership, is it that you’re living in it? Is it a second home, is it an investment? Your credit score is obviously very, very huge in your down payment. So there’s all these factors that then determine first your program. Are we talking FHA, CA, Conventional USDA, so on and so forth? That’s what the terms are. Now, if we talked last Friday versus today, it is very different. So we’re not expecting these rates to stay like this, we have a few investor call tomorrow with seven different lenders. To see what is the expected market forecast, though? But what we’ve seen since this boom, the lowest interest rate that I have lost with no points for an FHA purchase was 2.75. Then the lowest that they’ve lost for conventional purchase was 3%. For a refinance 3.125%. Now, the parameters for each of those are different, as FHA is 3.5% down with decent credit and so on, so forth.

Jazmine Glasgow:

So yes, these are rates that I’ve talked recently. I don’t know that they’ll be in the market for longer. I’ve checked Bank of America has kind of always are like last number to compare against what the market’s doing, what local banks are doing. I saw that it was now advertised up to 3.75%, I believe. With a point cost of roughly around there, which is a whole point higher than what they were disclosing last week. So I don’t think that this is the best [lossy 00:43:11] day. I think that we’re going to see a little bit of the market being pushed down for a little bit of time. I think that hopefully, we can bounce back to, hopefully, where were before the crash kind of happened. Well, we’re calling it as a crash.

Sharon McNamara:

Yeah. No, it’s not a crash.

Jazmine Glasgow:

[inaudible 00:43:29]. No, but it isn’t as it is, depending on which part of the market we’re talking about. The Treasury yield has crashed as low as it’s ever been. That’s what we follow. Not the housing market crash that people kind of think of but a treasury yield crash, which is… When the war in Iran was happening last summer, we saw the same thing happen, just nowhere near this impact, nowhere near. So we’re hoping to be back where we were about 10 days ago, maybe by the end of the week.

Sharon McNamara:

Let me ask you this question as well. So what do you do with clients that are doing a purchase and they’re locked in and now the rate has dropped significantly? How do you deal with that? What are their options if they’re locked into something higher?

Jazmine Glasgow:

Yeah, so the rates could cause a slowdown. You can go down, they’re certain parameters. You have to have a certain… There should be a certain phase involved. But you can absolutely float down as long as you meet the standards. What we’re seeing though, is most of the people who have locked in are doing so like a really good time, we’re watching the market. Then they either were able to close out right away or pricing doesn’t improve for their situation that much. Again, investors are not trying to follow the Treasury yield as closely as they could. Rates as is just [inaudible 00:44:46], it’d be much, much lower.

George Post:

I will say in terms of people that are purchasing as well, to ease some of the build-up with the processing. I’m sure you’re familiar with a 30-day, 45-day, 60-day rate lock. Typically, the further you go out on the number of days, the worst thing your pricing gets. We have seen in some instances that the pricing is actually the same out to a 60-day rate lock. Again, every one situation is unique. But that just eases the amount of time that we have to process these loans. So they know how busy they are, they’re trying to adjust and accommodate.

Mary Baker:

Well, that’s good to hear.

Sharon McNamara:

Yeah, one thing I want to read for you guys until we have to get to that seven o’clock break. Is so I follow this, Steve Harvey and he is with Keeping Current Matters. I’m just going to read you this slide.

Mary Baker:

I thought you were saying Steve Harvey from Family Feud.

Sharon McNamara:

No, Steve Harney, I don’t know what his name is but it’s Steve from Keeping Current Matters. But he said about affordability and this is from Black Knight, which must be a website. Still, even with the home price growth accelerating because that’s what we’re seeing. So home prices are going up. Today’s low-interest-rate environment has made affordability the best it’s been since the early 2018. Despite the average home price increasing by nearly 13000, the monthly mortgage payment required to buy that same home has actually dropped by 10% over the same span due to the falling interest. So basically, what he’s saying is that you can buy that same house that you could… Well, you can buy a house that’s $48000 more and still have the same principal and interest payment. What do you guys think of that?

Jazmine Glasgow:

It’s a great perspective, affordability is huge. What I’m saying, rates aren’t as great like we’re seeing it but still record low, they’re still ridiculously low. But having a rate in the 3% gives you incredible buying power than compared to where we were a year, a year and a half ago in the high fours. We’re seeing that market, we’re saying, “Hey, 5% is going to be our new environment or where we were in 2006 was 13% interest rates.” This is your huge buying power if you’re only borrowing it, $4.60 cents per 1000 versus 5.20. It means the biggest difference is your monthly payment and your comfortability in that payment as well.

George Post:

Agreed, and I know we have to break but speaking just on this topic. I had a client reach out today that we’re picking up the ball from where they were last July. They said, “We’re all set, we’re not going to move forward with anything.” They said, “Hey, George, we want to start shopping again.” Just revisiting their profile and Steve Harney or Harvey, whomever, he’s right. What their bucket of where they were trying to look before, is now looking a lot more affordable for them, in that same price point. Just picking up, all he had to do is wait seven months.

Sharon McNamara:

Perfect. Well, we’re going ask you guys to hold on. Ben, I just want to break in with you for a minute or two here. How are we looking for that seven o’clock? Do you need us to-

Benjamin:

We can do that right now if you like.

Sharon McNamara:

All right, well, perfect. So you’re listening to Talk Real Estate with Sharon McNamara, Mary Baker, and Melissa Wallace from Boston Connect Real Estate. We are the McNamara broker team here at Boston Connect Real Estate, who is our main sponsor, by the way, for our show. Stay tuned we’re talking about the Coronavirus. We’re talking about the impact it has on the stock market. How that affects the market for real estate? Right now on the line, we’re going to keep with us is Jazmine and George from Maritime Mortgage. So stay with us and hear what they have to say. We’ll be right back.

Speaker 1:

WATD FM Marshfield, WMAX Quincy, WBMS Brockton, and Translator W2668 Brockton. The South Shores first choice for live team coverage of breaking news, emergency traffic, and severe weather. WATD, streaming online at 95.9watd.com. With your smart speaker, just by saying, “Play WATD.”

Jackie Quinn:

AP News, I’m Jackie Quinn. The White House announces the nation’s top insurers have agreed to cover the cost of Coronavirus testing for clients and for treatment.

Mike Pence:

Waive all co-pays, cover the cost of all treatment for those who contract the Coronavirus. They’ve committed to no surprise billing.

Jackie Quinn:

That’s Vice President Mike Pence. Two more elderly people have died in the Seattle area, bringing the nation’s death toll to nearly 30. There are more than 800 cases now reported. Washington State Governor, Jay Inslee says the caseload keeps growing.

Jay Inslee:

There are 1000 people infected today. In seven or eight weeks, there could be 64000 people infected in the State of Washington if we don’t somehow slowdown this epidemic.

Jackie Quinn:

There are more than 100 cases in New Rochelle, New York. The governor is imposing restrictions on public events, including closing schools in the affected neighborhood. For most patients, the Coronavirus brings only mild to moderate symptoms. The Nightmare Cruise is coming to an end for passengers on the Grand Princess in California. More than 500 have disembarked, some sent to Travis Airbase.

Jackie Quinn:

Voters have been going to the polls in six states today. The APs, Julie Pace reports this is a key time for Democrats.

Julie Pace:

Tonight is really important because it’s our first chance to see Joe Biden and Bernie Sanders in a head-to-head contest. They are the only two on the ballot in the six states that are voting. Both of them for months, more than a year really, have been making an argument about electability.

Jackie Quinn:

The mayor of Kansas City, Missouri had trouble voting in today’s Democratic primary. It seems that Quintin Lucas’s name was entered backwards on the rolls. He wonders how many other voters face problems like that.

Jackie Quinn:

Stocks bounced upward today, gaining back about 5% of their value. The Dow was up more than 1100 points. This is AP News.

Bill Gile:

A lot of clouds for the first half of tonight with a stray shower or sprinkle working its way on through. Then clearing coming in late at night. Those will be dropping back to the low-40s. But tomorrow, a good deal of sunshine returns but it’s going to be a cooler day than the past couple of days. Although, we’ll still be running above normal with highs reaching into the low-50s. Then for tomorrow night, partly cloudy, lows dropping back to the mid-30s. Thursday we’ll have sunshine, mixed with a good deal of afternoon clouds. High temperatures will be right around 50-degrees. Then another weather system comes our way for Friday, bringing more showers and highs and the low at mid-50s. As we head into the weekend, looks to be turning windy and somewhat cooler with temperatures mostly in the upper-40s and low-50s and a fair amount of sunshine. For WATD, I’m meteorologist, Bill Gile.

Alyssa McNamara Reed:

This is Alyssa McNamara Reed with McNamara Financial in Marshfield. Here’s what people want to know about me. Are you a fiduciary? Are you independent and thus are your recommendations for me in my best interest? Are your costs reasonable? Can you help me with my money and making a plan for my future? Fortunately, the answer to all of those questions is yes. Call my office to find out more, 781-834-2010.

Speaker 1:

Don’t miss a minute of Talk Real Estate. Check out the podcast page at talkrealestateradio.com. Talk Real Estate, sponsored by Boston Connect Real Estate.

Melissa Wallace:

We are back. You are listening to Talk Real Estate with Boston Connect Real Estate’s broker team. My name is Melissa Wallace and I am here with my team members, Sharon McNamara and Mary Baker.

Mary Baker:

Hello.

Sharon McNamara:

Hello.

Melissa Wallace:

Hello. We also have our other team member here, Mark McNamara. But he’s being a little shy-guy here.

Speaker 15:

Very quiet.

Melissa Wallace:

Very quiet.

Mary Baker:

Nothing to do with plumbing tonight.

Melissa Wallace:

Again, we do have some preferred professionals on the line right now. But if you have to… Have to yeah, you do have to listen to our podcast. If you want to listen to our podcast, you can find us on the podcast @talkrealestateroundtable, we switched it up on you guys. Then talkrealestateroundtable.com. You can find us on bostonconnect.com, all of our contact information is there. Facebook, we’re on Boston Connect, McNamara Broker Team, all that fun stuff.

Sharon McNamara:

There’s really no excuse why you can’t find us.

Melissa Wallace:

No, you can literally Google us.

Mary Baker:

You can look up three people’s names and you can find us.

Sharon McNamara:

Yeah.

Melissa Wallace:

You can find us.

Sharon McNamara:

We have some callers tonight but I mean, people that we have asked to call in. But if you do have any questions for us, you can try calling in as well. I don’t know how many lines they have over there at WATD. 781-837-4900 is that number. We’re following along on Facebook because we’re on Facebook Live. So you can find us on facebook.com/bostonconnect and you’ll be able to ask us questions there because we got it all covered.

Melissa Wallace:

Yeah, we do.

Mary Baker:

Yeah, we’re on Instagram too.

Sharon McNamara:

Yeah.

Melissa Wallace:

All right, so let’s continue our conversation with Jazmine and George from Maritime Mortgage. Sharon, you said that you had another question for them before we get to Emmanuel and Mark.

Sharon McNamara:

Yeah, so I actually I don’t have a question but I do have another fun fact. Then I want you to give your insight and then we’ll let you have your final thoughts for the final seconds that you’re on with us. But the cost of renting versus buying. I have another slide here from Steve whoever, from Keeping Current Matters. The percentage of your income needed to afford a median rent. Historically, that number has been 25.8%. Currently, it’s 27.8%. So you can afford like it costs you more to rent right now.

Mary Baker:

Than it has historically, yeah.

Sharon McNamara:

Than it has historically. The percentage of income needed to afford a median home, historically, it’s been 21.2% and currently, it is 15.5%. This information is coming to us from NAR, which is the National Association of Realtors in Zillow. So what are your thoughts on that, for both of you, Jazmine and George?

Jazmine Glasgow:

Well, first, affordability is such a trigger term too because we really want to make sure that when you’re making these decisions, they’re comfortable. But we look at the cost of waiting and someone who would have purchased three years ago versus today. We often talk about just the affordability but what about the equity? What about the opportunity to actually have a retirement in a property? So home-ownership touches so much more than just that payment. Now, we do see now people going out of $2800 monthly rent to a $1900 mortgage. We’re still seeing that all the time but there’s so many more factors that we’re finding.

Jazmine Glasgow:

Each person situation is so unique that we actually do a calculated form. To say, “Hey, is this worth it for you and your family? Does this make sense in your life?”

Sharon McNamara:

Great. So what are some of your final thoughts for our final seconds? We do have to get on with Emmanuel Ebot, who you both know. So we can get some thoughts from him from a legal perspective.

Jazmine Glasgow:

George.

George Post:

I say final thoughts are we are definitely in a unique time right now. A lot of folks have a lot of equity in their property. Rates are low, historic low. It’s a unique time, it’s a great time to touch base with all your advisors. What, Alyssa touched on just not having a knee jerk reaction. Just it’s a great time to rely on your real estate, your mortgager, your financial advisors to say, “Hey, in the special time we’re in right now, what should I be doing?” Pre-visiting purchasing the house, revisiting tapping into equity on potentially a cashout refi to buy an investment property. It’s a good time to touch base with your professionals.

Sharon McNamara:

Perfect. Jazmine, what about you?

Melissa Wallace:

Agreed.

Jazmine Glasgow:

Agreed over that. No, it is a great time. It’s like you’re checking your thermometer, so yearly look back. Make sure that your pre-approval is still valid. Actually while you, guys you went on break someone Facebook messaged me and say, “Hey, I thought I was locked in with my current lender and it turns out I was not. I was at a three and a quarter interest rate. Now they’re telling me it’s going to be four and an eighth. Is this real? What should I do?” It’s one of those take a breath but check-in. Keep it current. If you got pre-approved just one certain day, the rates change all the time, so make sure to check-in. If you were pre-approved last summer, you probably find that rates are better now. So [inaudible 00:57:57] they come up a little bit. They’re still getting those results. So that was [inaudible 00:58:03].

Mary Baker:

Well, thanks, guys we appreciate you taking the time out of your days. Jazmine, especially while you’re sick. For all of our listeners out there who want to get in touch with you and kind of check in. See where they stand or maybe just find out what they can do, how can they get in touch with you, guys?

Jazmine Glasgow:

Actually, we’d love to hear from you.

George Post:

Well, we’re a team.

Jazmine Glasgow:

Yeah, we are a team. So we’ve got our Team Maritime @maritimelaw.com. Email or @teammaritimelaw.com, which will be shortened tomorrow. You can call the office or reach out to either one of us. That is 781…

George Post:

What’s the office number? Okay.

Jazmine Glasgow:

781-341-4000.

Sharon McNamara:

Perfect. Give it that one more time.

Jazmine Glasgow:

781-341-4000.

Sharon McNamara:

Perfect. So for all of our listeners, you were listening to… Well, you’re still listening to Talk Real Estate but we just had Jazmine Glasgow on with us as well as George Post. They’re from Maritime Mortgage, they’re the best of the best. I literally did my loan here with them as a team. So I called them today and said, “Will you come on the show with us?” They were always willing to do that and they did that for us tonight, even though, Jazmine isn’t feeling great. We’re going to put this show as one big blog, so everybody will have that contact information. But if you want to listen to this, again, feel free to go to our podcast app, which is you can find Talk Real Estate Roundtable or you can go to talkrealestateroundtable.com. Thank you so much you, guys. I really appreciate you and everything that you do for Boston Connect Real Estate and for our clients.

Benjamin:

They, unfortunately, did disconnect but they did hopefully want to say thank you very much, Sharon. That might have been my fault, I apologize, guys.

Mary Baker:

I’m sure will get a Facebook message.

Sharon McNamara:

You’re welcome.

Benjamin:

We do have our next guest lined up as well.

Sharon McNamara:

Okay, perfect.

Melissa Wallace:

Okay, so I believe we have Emmanuel Ebot, is that correct? Emmanuel, are you with us.

Emmanuel Ebot:

I’m here. Good evening, ladies.

Melissa Wallace:

Hello. Thank you so much for joining us. So for our listeners who haven’t heard Emmanuel on our show before, his name is Emmanuel Ebot and he’s from Stiles Law.

Sharon McNamara:

He’s an attorney.

Melissa Wallace:

He is an attorney.

Sharon McNamara:

He was on with us before but no one heard him because Mark did all the talking.

Melissa Wallace:

Yeah.

Mary Baker:

It’s very true.

Melissa Wallace:

Now you have the floor, Emmanuel. It’s all you.

Sharon McNamara:

Yeah. So, Emmanuel, what are some of the things that you’re seeing from a legal perspective regarding the Coronavirus?

Emmanuel Ebot:

Well, it’s still a little early and I guess I’ll echo what Alyssa was saying in the first hour. That whenever something like this happens, we get the frantic calls from people. I think it’s important to not to panic, breathe. Real estate investment, whether it’s your primary residence or you’re investing for rentals going forward, those you’re looking for long-term returns there. So the short-term blip, so to speak, really shouldn’t impact whether or not you’re going to buy your primary home or buy an apartment to rent. So when we do get the call, that’s kind of the message that we’re giving to folks. That no need to make any rash decisions. Just wait, as a country, we’re still in fact-finding mode here as to how long this is going to be. But don’t panic is essentially what we’re telling folks.

Sharon McNamara:

So have you seen people… That was one of my questions and I know we talked about it briefly. I actually sent you an article that I had seen from Inman News. What do you see? Are you seeing people, maybe buyer’s or seller’s that are suddenly saying, “You know what? I’m not going to do this?” Not only are we going through the Coronavirus, we’re going through a process of a presidential election that’s going to be happening at the end of the year too. That seems to be a little controversial. So people aren’t… I just don’t know if the confidence… I feel like the rates are having the consumers have confidence in the market. But I feel like things like this and the presidential election, maybe have people stepping back a little bit and thinking. Have you seen any of that?

Emmanuel Ebot:

Well, in any market, uncertainty is not good and the real estate market, there’s no difference. We really haven’t, at least personally, I really haven’t seen buyers or sellers use this issue as a reason not to move forward on the transaction or not. It is, however, causing people just ask questions. What happens if the registry shut down? Okay, so it’s more just thinking through how is this going to affect either the transaction that I’m in right now or if I’m looking to sell my home or list the home. I’m looking to buy an investment property or I’m looking to flip. How is this going to impact that? So it’s really more the conversation that we’re having now with our clients are more the practical effects of how it’s going to impact us in the short-term. That’s in when it comes to buying and selling homes, the commercial side in a commercial agreement there’s typically a force majeure clause. What that just means is that if there’s something that comes up, act of God, that prevents one party or both parties from actually performing. Let’s just say the registry is closed or there’s an earthquake or a flood-

Sharon McNamara:

A tornado. I don’t know-

Emmanuel Ebot:

Exactly. I know that’s dear to your heart or a tornado. It allows the parties to be free. Essentially, not be bound by those obligations anymore. I think we’re going to start seeing a little bit of that kind of filter into the residential agreements that we’re negotiating. Just flexibility on some of these dates with such uncertainty out there.

Mary Baker:

Yeah, so that was actually one of our questions. The three of us were mulling over kind of how we could see the Coronavirus impact purchases and sales agreement. So would you say you’re seeing more contingencies and longer deadlines being put into place, whether it’s commercial or residential just as a precaution?

Emmanuel Ebot:

I think we’re going to start to see that. Again, we’re still a little early. I know, Sharon, you sent me an article last week about this. Where, Mark, I think it was in California, where there’s already contingency in these agreements about delays related to the Coronavirus. If municipalities are shut down or if the buyer is from another country and needs to come in to sign. But that country is on lockdown. So as I think it was Jazmine that mentioned that. It’s now on our shores. it’s now here in Massachusetts. So it’s real for us now. I think you’re going to start to see just as it turns in this community. We’re going to have to find ways to compensate for that uncertainty when it comes to performing. When we are a time is of the essence state, where the dates matter. I think we’re going to have to be a little flexible on that on both sides, both buyers and sellers. Until we get a sense of how long this is going to be or if this is a new normal or if it’s seasonal. The uncertainty right now, I think is what’s causing a lot of people anxiety.

Emmanuel Ebot:

But like every other real estate dip, we always get through it. Whatever the new normal becomes, we adapt and the market goes forward. At the end of the day, especially here in our area, real estate is still a very good bet to put your money. Even in the downturns in ’07 and ’08, we didn’t get hit as hard as some other places around the country. We also recovered much faster than other places in the country. So I don’t know whether it’s going to impact behavior too much and people not buying and selling. Only because again, it’s a safe bet. But I think people are just going to have to think through the things that we’ve taken for granted to date.

Sharon McNamara:

Well, first of all, it’s because we’re Boston strong. That’s why we recover faster than anybody else in the country. But I know the answer to this question but you did bring up people having concerns about the registry closing. So why don’t you tell our listeners what would happen in a situation like that?

Emmanuel Ebot:

Again, right now, it’s basically when the buyer and seller come with the contract, they essentially close the transaction by recording the deed at the registry. That’s what terminates the deal, that’s what transfers ownership from the seller to the buyer. If the registry of deeds are closed, that transfer can take place. So the parties are basically still in contract. Essentially, what we would be kind of putting into place in these contracts, is that if that does happen if the registries are closed for an extended period of time. There is an extension, where the parties just agree to extend the closing date until the registry opens. If the registry’s set up an online system, I think there’s already E-filing right now. But if they only accept the file via online, we just have to… It’s one of those things where it’s again, what I started with, not panic and just address the issue as it comes.

Emmanuel Ebot:

So when that happens, we’ll adjust. Again, it’s not something that hasn’t happened before. I think Alyssa was mentioning that going back to the ’80s, we’ve had these blips in the market that the fear kind of drives everything down. But we’re here in 2020 and we’re still going.

Sharon McNamara:

Yeah, and social media, I think right now is making things sort of move a little bit faster than it was back then. So I think that’s why we’re seeing such an impact so quickly. I know, Mark, again I know he’s at a meeting tonight for the ZDA in Marshfield. But I know he’s a huge advocate of this. What I’m going to bring up next is with these changing tides and trying to manipulate around them and figure it all out. This is the most important time for you to have as a buyer or a seller, to have a professional team standing behind you. Not behind you, actually standing with you, beside you and helping you. We joke around where we always say I got a guy, I got a guy. But we really do and I think that as us as a team if we’re able to stay calm for our clients, I think that will help with their-

Mary Baker:

Anxiety.

Sharon McNamara:

Yeah, with their anxiety, the stressfulness of this whole process. Just them having confidence in this getting done because eventually, it will.

Emmanuel Ebot:

Absolutely and I think that you couldn’t have said it any better. I think it’s incumbent on us realtor professionals, whether it’s Alyssa or Jazmine and George earlier, your office. They’re going to look to us to give guidance and it’s important that we stay level-headed because if we’re not level headed, then there’s no way the clients are going to be either. So it’s…

Emmanuel Ebot:

Again, just a small testimonial. I feel bad for Jazmine being under the weather. I feel like my client actually contributed to that because she spent hours and hours with my client to get her to close. So when I heard her on the radio earlier, I was going to shoot her a text and apologize. I didn’t know she was under the weather.

Mary Baker:

That’s a true team right there, though, Emmanuel.

Emmanuel Ebot:

That is exactly right. But when all the professionals work together, that’s kind of what gets us navigate these difficult times. Again, that’s when you really need that team behind you that works together. We all talk even offline when we don’t have clients to talk about. About what’s happening in the market, how we can improve our process and what have you? So yeah, I think that’s going to be really, really important going forward.

Sharon McNamara:

Yeah, and I think that one of the things that our team, in general, we’re just talking about our team that was on the radio tonight. Is I think that we all do a very good job of being courteous of the other person and what can we do to make your job easier? Emmanuel, I know we’ve talked about that. I’ve checked in with you and Mark before and said, “Hey, how are the Boston Connect agents for you? Is there anything that we can do to make your process easier?” Anything we can do to make that easier, it gives you more time to be with our clients. I also think that this is who’s across the aisle from us, so to speak. With our co-brokers, we have a lot of great agents in this general area. We may wear different colors but we’re colleagues, we’re not competitors. I think with us staying level-headed with whatever color you’re wearing, as it should. That’s us coming together to show that we are true professionals and we’re here to help our clients get to the very end.

Sharon McNamara:

Your office is always so great with us and all of our clients, so we appreciate that. What are some of your final thoughts?

Emmanuel Ebot:

Well, final thoughts are I think just summing up what everyone has said tonight. That there’s uncertainty and in uncertainty, the markets never like that. The stock market don’t like it, real estate market doesn’t like it either. But we’ve had uncertainty in the past and we’ve gotten through it by staying level-headed and just addressing the issues as they come. So no need to panic. If you’re looking to buy real estate, this is not an affiliate bad time to buy. It’s just you just have to talk through what your plans are, how long you want to hold it. The only segment if they were calling me today and wanted to buy a property, I would tell them to pause, would be flippers. Their returns are usually short-term in nature. I would say let’s wait to see how this is going to play out, how long this is going to be. But anyone else if you’re looking to buy your dream home, that’s a long-term proposition, don’t let this affect that. If you’re looking to buy a rental property, again, you’re looking for long-term returns on that. Don’t let this be the thing that stands in your way.

Emmanuel Ebot:

Just get the support that you need. There’s no reason this can’t be a time for you to take advantage of the blip.

Sharon McNamara:

Yeah.

Mary Baker:

That was a great final thought there, Emmanuel. I feel like everybody was so eloquent tonight. Very well put-

Sharon McNamara:

Talking about being level-headed, I always say that Emmanuel is one pulse short of being flat-lined but in a good way. He calms me down.

Melissa Wallace:

Emmanuel, how can I listeners get in touch with you?

Emmanuel Ebot:

Well, you can call the office where it’s Stiles Law, 781-319-1900. You can also shoot me an email at E-B-O-T @stiles-law.org. You can call you guys, you can always look out for me.

Mary Baker:

We have everybody’s number.

Melissa Wallace:

We got everybody’s number. Well, thank you so much, Emanuel, for taking some time out of your night away from your family to be with us and our listeners. We’ll be sending more deals your way, don’t worry. I think you got two today, my friend.

Mary Baker:

Yes, it’s two deals today from us.

Sharon McNamara:

Hope we’re keeping you busy enough.

Emmanuel Ebot:

That’s two, yeah.

Melissa Wallace:

All right, thank you so much, Emmanuel.

Sharon McNamara:

All right, thanks, Emmanuel. Have a great night.

Emmanuel Ebot:

All right. Good night. You too, bye.

Sharon McNamara:

Bye.

Melissa Wallace:

Again, that was Emmanuel Ebot from Stiles Law. He’s just so great, we love him.

Sharon McNamara:

Isn’t he? I know, he’s so good.

Melissa Wallace:

We love all of our people.

Sharon McNamara:

Yeah, we’re very, very lucky that we have such a good team. So including us as a team.

Melissa Wallace:

Yeah, I think we’re pretty good.

Sharon McNamara:

Yeah, I think so too, triple high-five.

Mary Baker:

We’re talking about us because we only have a couple more minutes. What are our final thoughts about this? So do we currently feel an impact of the Coronavirus? Do we think that there’s going to be a greater impact after this and what are our words of wisdom?

Sharon McNamara:

Mary, why don’t you give because that’s our five-minute warning, I think. So why don’t you give the concept that you gave about seeing people out in that $500000 price range and what your thoughts were on that?

Mary Baker:

Yeah, personally, I don’t know that we’ve seen the Coronavirus impact us, by people being scared to go to open houses. It’s still been an incredibly busy market but I also feel like that has a lot to do with the decreased amount of inventory, the low inventory that we have and the lower interest rates. So I know we’re kind of as Jazmine and George were talking about. Being in that uncertain time right now with the interest rates just going up yesterday at two o’clock. But at the same time, with how low that they’ve come and I can see it. We used to see bidding wars and the threes and the fours. Now, because people can afford more, that affordability portion that we were talking about. We’re seeing those bidding wars going up into the fives and going up into the sixes. Which historically, we really haven’t seen before. So those buyers that once could afford your $400000 house or your $300000 house are using and understanding that they have that extra $48000 that you’re talking about of buying power to purchase something else. Get themselves into maybe not the first house but the forever house.

Sharon McNamara:

Yeah. So for my words of wisdom, one of the things that I’ve been thinking about is since interest rates are so low and the inventory is even lower. I’d say historically low right now. I think that we’re having a problem with nobody has any place to move. So I think one of the ways to really get the house of your dreams is to be creative with that offer. So we’re seeing multiple offers. We’ve had last week in Marshfield, I had 45 groups of people at one open house. This past weekend, I had another house in Pembroke on Elm Street that was 18 groups of people. So we’re seeing consistently in Bridgewater, you had 40 to 50 reviews.

Mary Baker:

I couldn’t keep track. That was the hand-spray one.

Sharon McNamara:

Yeah. So I think that If you can get into negotiations with a seller and the seller is contingent upon finding suitable housing and they’re having a hard time. Consider asking them if they would close now and do a rent-back if you’re willing to rent somewhere while they’re finding a house. You’ll be able to take advantage of those rates. So again, thank you so much for listening to Talk Real Estate with Sharon McNamara, Mary Baker, and Melissa Wallace. You can find all of our information on bostonconnect.com. We’re going to do a great big blog on this. If you have any questions for us, just reach out at 781-826-8000, bostonconnect.com. You’ll find all of our profiles.

Sharon McNamara:

We hope you enjoyed the show tonight and continue to wash your hands and use hand sanitizer. We’ll see you next week everybody, bye-bye.

Mary Baker:

Bye.