COVID Real Estate Market Update
We are now 7 weeks into COVID-19 and a lot has happened in that time! We could show homes, we couldn't show homes, we could do photography, we couldn't do photography. It's been a roller coaster to say the least and the Real Estate market has certainly been affected... but HOW MUCH?
I've analyzed the data provided by the statistical genius, Megan Aller, and brought just a few graphs to this article. This first chart below shows quite a bit and might look like information overload BUT it's actually very easy to understand when you break it down.
- First: look at the columns and determine whether you want to review Detached homes (single family homes) or Attached homes (condos, townhomes).
- Second: within those two (2) categories, the data for April is the first column followed by MOM (Month over Month) to show the difference from March to April and then YOY (Year over Year) to show the difference from April this year to April 2019.
Now I will take a look at a couple of these metrics to break them down further on what they actually mean.
AVERAGE & MEDIAN SOLD PRICE: For both detached and attached homes, we saw the same trend for our average and sold price. Month over month, they are all down. Therefore, yes COVID did affect that area since we typically see an increase for this time period. However, year over year is still up for all of them meaning our appreciation is still increasing from last year even with the month over month drop.
MONTHS OF INVENTORY: I want to analyze this one because it also shows how the market is fairing in terms of being a "buyer market" or a "seller market". The National Association of Realtors (NAR) has determined that a "balanced market" meaning buyers & sellers have an even playing field is 6 months supply of inventory. From our chart, you can see that both detached and attached homes increased fairly significantly in this category (from 25-90%) BUT if you look at the actual number for April (1.5 & 2.1), you will see that both are incredibly shy of that 6 month even playing field. This means it's still very much a sellers market with a long way until we reach a buyers market!
% OF CLOSED TRANSACTIONS WITH REDUCED PRICES: So this is an interesting one to look at because you will see the April numbers reflect that price reductions were actually down month over month as well as year over year BUT since this is a lagging indicator, those numbers are truly reporting for March. Therefore, it's better to analyze the most recent numbers and when looking at April reductions per week, we actually found that 22.65% of homes reduced their prices (detached and attached homes combined). This is almost 1 in 4 homes, which is higher than we typically see this time of year.
Lastly, I wanted to provide this graph reflecting the amount of showings we had directly after Governor Polis moved Colorado into the "Safer at Home" order even though most of the individual municipalities extended the "Stay At Home" order. When looking at this graph, the two (2) smallest green bars are during the time we could not do showings. Now you might be wondering: "why are there still showings when we couldn't do them?" There could be many answers but the easiest is that a showing COULD be done IF the buyer submitted an offer sight unseen and was able to get under contract on the property before the showing.
The last green bar on the right side shows a spike once showings were allowed, which means the pent up demand got out immediately when we could and saw properties in person! That amount is still down from where we were in March but I have a good feeling it will make a come back soon!
As always, if you have any questions at all, please don't hesitate to call, text, or email me. I'm ALWAYS happy to help! Kylie