Raj Qsar on the state of the luxury market: ‘It’s on fire’

The owner and CEO of The Boutique Real Estate Group in Orange County has seen a significant shift in buyer attitudes since the onset of the pandemic

This spring has been an exceptionally tumultuous one for the luxury market — a pandemic, an initial fear of a market crash and, later, a boom of affluent buyers looking to spend big money on homes in places like Orange County and the Hamptons.

Raj Qsar

Raj Qsar, the owner and CEO of The Boutique Real Estate Group, has been at the forefront of that ride through the unknown. His brokerage, which works with homes from $2 million to upwards of $10 million in Orange County, California, has seen a direct shift in buyer attitudes — from fear and hesitation when the pandemic first hit in March to a present-day focus on finding a home that can be a long-term source of shelter and enjoyment. Money is going toward not just primary and vacation home markets but also home improvements aimed at making a home a personal haven.

“Many dual-income millennials who are making decent money have really changed their perspective,” Qsar told Inman, adding that size and amenities are the hottest trends in real estate. “You can see a definite mindset shift. They’re really coming in and not buying that tiny shack with room for one bed. They want a single-family home with a front yard and a backyard.”

We’ve interviewed Qsar about what his buyers are asking for and how that could shape the future of luxury real estate for years to come.

Inman News: What’s been happening in the Orange County luxury world during the last few weeks?

Raj Qsar: We’ve definitely seen a change in the luxury market. You could even say it’s on fire. It’s picked up a lot, at all price points — $1-$5M, $5-$10M and $10M and up. Buyers and sellers are definitely both in the market. There was a pause at the beginning of the virus just because no one knew what was going to happen. The last two weeks of March were definitely interesting but then things slowly started picking up. In the blink of an eye, the market was back. It’s now the strongest it’s ever been, really.

Is that due to pent-up demand, springtime buyer interest or a combination of both?

We keep hearing about pent-up demand from every news channel. I think there’s a little bit of truth to that but I think that people also, after going through what the country went through and spending so much time locked up inside, just want a nice place. Home offices were gone and now everyone wants a home office again. They’re working from home and want a place to be when the kids are all over. The secondary housing market is strong too because people want a place that they can escape to.

So the initial fear of the pandemic prompting a housing crash has been far from your experience?

That’s right. They’ve been saying that the market is going to crash and that we’re going to go into a recession for the last four or five years. The exact opposite is happening, actually. The market is stronger than ever, and people want to spend money on real estate. The first couple of weeks were a little bit scary, but I really do feel like people want to spend and they want to spend it on their house.

What are some other things that luxury buyers are asking you about?

Pools are back in, outdoor kitchens, outdoor barbecues — anything outdoors. People are putting money into their homes, upgrading with really nice high-end appliances, things like that. Owners want to love their house and everything about it. A lot of stuff that was being put off, like adding another bedroom or bathroom, is back. People are doing whatever they wanted to do.

You’ve observed a big change in buyer priorities?

Yes. Many dual-income millennials who are making decent money have really changed their perspective. You can see a definite mindset shift. They’re really coming in and not buying that tiny shack with room for one bed. They want a single-family home with a front yard and a backyard. All the stuff that wasn’t important has become important again.

Could these buyer preferences alter how future houses are built for years to come?

I think so. There’s definitely a shift in the whole indoor/outdoor space. People want the inside to feel like the outside and the outside to feel like the inside. Living rooms, cabanas, TVs — the stuff that we’re seeing right now is jaw-dropping. The stuff people are doing to their houses, it’s like going to a beach party in Vegas. We’re just a few months into the virus, but the aftermath of it is going to be years and years. People are always going to remember 2020 and being locked up at home. That will influence what they want in their homes.

BY VERONIKA BONDARENKO via Inman News

COVID-19 Industry Guidance: Real Estate Transactions

As stay at home orders are modified, it is essential that all possible steps be taken to ensure the safety of workers and the public.

This guideline is intended to help people involved in real estate transactions implement their plan to prevent the spread of COVID-19 in the workplace and is summarized from the Guidance for Real Estate Transactions. This summary contains excepts from the full document, referenced above.

This document provides guidance for businesses operating in the real estate industry including sales and rentals of single-family, multi-family, apartment, commercial, and industrial properties to support a safe, clean environment for workers. The guidance is not intended to revoke or repal any employee rights, either statutory, regulatory or collectively bargained, and is not exhaustive, as it does not include county health orders, not is it a substitute for any existing safety and health related regulatory requirements such as those of Cal/OSHA. Stay current on changes to public health guidance and state/local orders, as the COVID-19 situation continues. Cal/OSHA Interim General Guidelines on Protecting Workers from COVID-19 webpage. CDC has additional requirements in their guidance for businesses and employers.

Worksite Specific Plan

  • Establish a written, worksite-specific COVID-19 prevention plan at every facility, perform a comprehensive risk assessment of all work areas, and designate a person at each facility to implement the plan.
  • Identify contact information for the local health department where the facility is located for communication information about COVID-19 outbreaks among employees.
  • Train and communicate with employee representatives on the plan.
  • Regularly evaluate the workplace for compliance with the plan and document and correct deficiencies identified.
  • Investigate any COVID-19 illness and determine if any work-related factors could have contributed to risk of infection. Update the plan as needed to prevent further cases.
  • Identify close contacts (within six feet for 10 minutes or more) of an infected employee and take steps to isolate COVID-19 positive employee(s) and close contacts.
  • Adhere to the guidelines below. Failure to do so could result in workplace illnesses that may cause operations to be temporarily closed or limited.

Shown Properties Specific Plan

  • Establish a written COVID-19 prevention plan to be followed by agents who show properties. Display a set of rules for agents and home viewers at the entrance of the property that are to be a condition of entry. The rules must include instructions to use face coverings and hand sanitizer. It must include instructions to maintain physical distancing and avoid touching surfaces of the shown property. The rules or a link to the rules should be part of online public and MLS listings. Posted rules show be clearly visible and include pictograms.
  • Real estate and rental agents must confirm understanding of the rules with visitors before showing the propetty and provide a digital copy of the COVID-19 prevention plan to clients, appraisers, inspectors, stagers, purchasing agents and contractors and obtain their agreement to follow the plan prior to enterting the property.
  • Regularly evaluate compliance with the plan and document and correct deficiencies identified.

Cleaning and Disinfecting Protocols for Shown Properties

  • Thoroughly clean shown properties and disinfect commonly used surfaces including counters, door and cabinet handles, key lock boxes, keypads, toilets, sinks, light switches, etc. These surfaces must be cleaned and disinfected before and after each showing.
  • During a showing, introduce fresh outside air, for example by opening doors/windows and operating ventilation systems.
  • Instruct employees to wipe down and disinfect equipment that passes between employees and customers, including clipboards and keys, after each use.
  • Provide time for workers to implement cleaning practices before and after shifts. If cleaning is assigned to the worker, they must be compensated for that time.
  • Equip shown properties with proper sanitation products, including hand sanitizer and sanitizing wipes, for use by employees and clients.
  • Provide and strongly recommend clients, real estate licensees, and inspectors to use face coverings and hand sanitizer. Place these items at the property entrance so that people can put them on before entering. Ensure disposable covers are properly discarded after use, for example in a tras bag that is sealed prior to disposal.
  • All people entering a property, including agents, brokers, inspectors, and clients, must wash hands with soap and water immediately upon entry and before touring or inspecting the property, or use hand sanitizer when handwashing facilities are not available.
  • Adjust or modify showings to provide adequate time for regular deep cleaning and disinfecting. If the property is currently occupied, ensure adequate time to disinfect after occupants leave for showings and before and after clients view the property.

Physical Distancing Guidelines for Shown Properties

  • Discontinue holding open houses and showings open to the general public on a walk-in basis; use an appointment or digital sign-in process to control the number of people in the house or property.
  • Ensure current occupants are away from property during showings, consistent with their legal rights.
  • Utilize virtual tours in lieu of open houses via digital technologies, social media, etc. in lieu of property showings whenever possible. If virtual tours are not feasible, limit the number of people present during showings. When a real estate licensee or renter is present, maintain physical distance at all times.
  • Employees and/or contractors must open doorways or other areas of ingress or egress prior to in-person property showings to minimize clients touching surfaces.
  • Real estate licensees should remind clients to maintain physical distancing during showings and refrain from touching handles, switches, pulls, etc.
  • All persons on property for in-person showings should avoid touching knobs, faucets, toilets and toilet handles, light switches, garage door opener buttons, handles and pulls, alarm system controls, fan pulls, remotes, thermostats, switch boxes, gates and gate latches, window locks and sashes, pool coverings, and other such items.
  • Prior to and concluding in-person showings, real estate licensees must disinfect mobility and safety fixtures on the property such as handrails and banisters.
  • All home inspectors and prospective homebuyers who accompany the inspectors should use face coverings while performing on-property inspections. Home inspectors must have access to and utilize soap and hand sanitizer.
  • All information must be delivered electronically. Discontinue providing handouts or other types of promotional or informational materials.

Additional requirements must be considered for vulnerable populations. The real estate industry must comply with all Cal/OSHA standards and be prepared to adhere to its guidance as well as guidance from the Centers for Diseases Control and Prevention (CDC) and the California Department of Public Health (CDPH). Additionally, employers must be prepared to alter their operations as those guidelines change.

Is Listing Your Home During the COVID Outbreak A Good Idea?

Normally, spring in Southern California is an excellent time to list your home for sale.

It’s the time of year when people are ready for a new beginning and planning big life changes. 

Normally.

Right now, the COVID-19 pandemic has led to government orders that range from social distancing to sheltering in place, which has changed life as we know it. When the streets are empty and you haven’t even seen your neighbors in weeks, a big question for would-be sellers remains: Should I even bother to list my house for sale? Here are the pros and cons to consider in these unusual times.

Pro: Right now, homes are STILL ACTUALLY SELLING in all parts of Southern California.

And…they are still selling near, at, or above asking price for many price ranges. Even with showing restrictions in place and virtual open houses flooding the internet, buyers are making legitimate offers and moving forward. We are still poised to help sellers navigate these interesting times.

Pro: Right now, homes are mortgage rates are very low.

In an effort to stimulate the economy, mortgage rates have dropped to new lows — and they could fall even more in the coming weeks. This is good news for potential buyers who were on the hunt before the pandemic hit and might help them continue to feel confident about a home purchase. For sellers, this also could mean that the buyers who do make offers are the most serious about making a purchase. Looking for an amazing lender to assist you? Click Here

Pro: There’s more certainty now than there is about the future.

Economic reports are enough to make anyone feel anxious. However, what we know right now is that there’s a stimulus package coming, many are still working (albeit remotely) and that social distancing measures will be in place for at least the next month or so. Things could get better, or they could get worse and lead to further restrictions. Delaying your home sale runs the risk of potentially missing the window and ending up having to list when the market is down.

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Pro: Open Houses Are Available Virtually.

Virtual showings may be a great option for sellers and buyers who are serious about social distancing. An excellent agent will be able to make your home’s virtual presence as compelling as it is in-person. Whether it’s via FaceTime, a 3D virtual tour, or a Facebook Watch Party, a virtual open house may just be the perfect answer to showing off your home during the COVID19 crisis. Not only is it a safer option during this time, but it can also be more convenient for those not being able to make the short window that traditional open houses typically offer.

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Con: You’ll have to find a new place to live.

You’ll have the same issues facing your potential buyer, because you’ll be a potential buyer, too. Even if you do line up a new home, there are possible delays that might necessitate temporary housing (renting an Airbnb, seasonal home, or a short-term rental if you’re even able to) which was much easier to find pre-COVID than it will be right now. Then, there are the actual practical considerations of moving: Will there be movers available to help you out? Will you be able to easily shop for moving supplies (especially if there are travel curfews in place, or if home improvement stores experience delivery delays)? However, there is a silver lining: Some rental owners may be inclined to offer significant rental discounts as their short and long term incomes have also been affected.

Potential Con: Mortgage guidelines are changing more than ever right now 

With some of the potential uncertainty in the market, banks and mortgage brokers and their institutions are possibly changing approval guidelines for purchasers. What does this mean for you? This means you’ll need to be sure to vet the buyer and the lender on your transaction to ensure that no delays occur for your transaction.

The bottom line is that putting your home on the market right now is a calculated risk where the need to sell outweighs any anxiety you may feel about how COVID is affecting the market. With an experienced agent, you can find creative ways to keep your home sale running smoothly (and safely, observing all precautions). 

While we tried to cover the big pros and cons of listing your home during the COVID-19 pandemic… There might be info relevant to our market that can further affect your potential sale. Whether you need a sounding board or advice on how the market is adapting in real-time, we are here to listen to any and all of your concerns.

Give us a call at 714-482-6362 or email us at Info@TheBoutiqueRE.com

COVID-19 Orange County Real Estate Market Report

Our team at The Boutique Real Estate Group has been collecting data and information from the California Association of Realtors (CAR), and will continue to update our reports to help our clients and community better understand the impact of COVID-19 on a statewide and county level.

For the full press release from CAR click here

CA at a glance: March 2020

Statewide, existing, single-family home sales totaled 373,070 in March on a seasonally adjusted annualized rate, down 11.5 percent from February and down 6.1 percent from March 2019.


Despite a dip in housing demand, the statewide median price rose from both the previous month and previous year.  March’s statewide median home price was $612,440, surging past the $600,000 benchmark for the first time in three months, moving up 5.6 percent from February and up 8.3 percent from March 2019.


The statewide Unsold Inventory Index was 2.7 months in March, down from 3.6 months in February and from 3.6 months in March 2019, making it the lowest inventory level in three months.

*The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales.

OC at a glance: March 2020

In Orange County, the median sales price of existing single family homes in March 2020 was $882,000 increasing 0.2 percent from $880,000 in February 2020 and 9 percent from $809,500 in March 2019.

Gains in house sales for individual counties, which had been at or near double digits in February, also did an about-face in March.  Orange County posted a 1.6% sales gain, compared with a 34.7% increase in February.