The real estate market is always something to keep an eye on – like most markets, it fluctuates, and it does so big time. The era of COVID-19 brings no exception to this, and our team has seen some interesting supply and demand trends.
Right now, the market has many of the same characteristics as pre-Covid but at at a reduced pace and both a reduced supply and demand. It may help to think of this as a shrunken down version of the “regular” real estate market, but with all of the same features – if something is priced to rent or sell, it usually does quickly. While there are certainly fewer people looking to rent, buy or sell, it simultaneously feels like there is about 50-60% less demand – at least on the sales side of things. Very few sellers are listing, as they seem to be waiting for the lockdown to be at least partially lifted before doing so.
“If something is priced to rent or sell,
it usually does quickly.”
The clients, however, are still there. With social distancing in place and keeping us all at least six feet apart, most prospective renters have gotten on board with virtual video showings in place of the typical walk-throughs. It does take two to tango, and landlords and management companies have done a phenomenal job with giving great incentives, as well. More often than not, it’s those incentives that tip the scale for a renter that happens to be on the fence about moving during this time period.
“It’s like a coiled spring, ready to explode!”
- In March 2019, there were 2,384 active rental listings versus only 1,730 this March.
- The median sales price for a single-family home in March 2019 was $595,000 – a 3.4% increase from March 2018 ($575,500). In March 2020, the media sales price for a single-family home was up 6.8% to $640,000.
- In March 2020, the median sales price for a condominium jumped up by 12.7% to $619,950 from $550,000. For reference, there was only a 0.2% increase from 2018 to 2019.
We’re keeping our eye the numbers, a pulse on the market and an open mind for the future. While we can’t determine what’s going to happen, there are many things we can do. Like work to make your rental, sales or buying process enjoyable – from the safety of your current home.