What is happening in the market this month?
With COVID-19, there has been a lot of uncertainty surrounding what is going on, and what is going to happen with the real estate market. So what has changed?
This graph shows the number of new listings that have come to the market in the month of April, along with data from the last year. The numbers for April 2020 have dropped by 22.4% compared to last year. At this time last year, there were 7,741 new listings compared to 6,008 today. This is quite the drop, yet the market is making a come back everyday.
The number of pending sales has dropped by 19.8% compared to last April of 2019. Last year at this time, 5,772 homes were in pending status, and today there are 4,630 in pending status. As you can see on the graph, there has been a sharp decline from March to April in pending sales.
When looking at the graph for closed sales, it shows that as of April 2020 we are up 3.9% from this time last year. Now you may be wondering, why are closed sales up when new listings and pending listings are down? At times, it can take 60-120 days or sometimes even more for a home to actually close, from the day that it went on the market. As March 2020 is when we started to feel a greater impact of COVID-19, it’s likely that we won’t feel the impact of closed sales being down until July or August of 2020, since listings and pending sales have been decreasing since March.
SHOWINGS PER LISTING
As we can expect in times like these, the amount of showings per listing have decreased by about 27%. Less people are in the marketplace looking for homes, however us realtors have indeed noticed that the people who are still out there, are extremely serious! Our team has still experienced multiple offers for our listings over the last few months, along with homes that we are assisting our clients in purchasing. So even though the competition has slowed down, it’s still there indeed.
AVERAGE SALES PRICE
The data above considers all property types and values in the Twin Cities Region. We at the Life By Design Team are data nuts and if you would benefit from a similar market update for a specific area, property type, etc. we would me MORE than happy to provide you with that information. Reach out, and we are at your service.