Has The Real Estate Market Rebounded?
We are now into June and almost 3 months into COVID-19. A lot has happened in the last 3 months. But the question I keep getting from friends, family, clients is... has the real estate market rebounded? Well.. the easy answer is: it's still up for debate. However, based on the recent data, my personal feelings are that it is back to being an incredibly strong seller's market, which is where we were at prior to COVID. If you're asking yourself what data shows that result, well here we go!
Let's break this down....
Looking at this past month (3 bars on the right), the number above the bar says either .9 or .8, which is measuring the Months of Inventory. That number states that there is less than 1 month of inventory, which means we would completely run out of available homes to purchase within 1 month if no new homes were listed. The National Association of Realtors states that a balanced market (buyers & sellers have equal opportunity) is at 6 months of inventory. We are far from that. (Side Note: We did increase/double during the peak timing of COVID though.)
In looking at the data on the right hand side of the picture, New Listings are down (inventory is low) and Pending (homes going under contract) is up, which combined means there is more competition amongst buyers and typically means a bidding war for homes that are priced well.
One more graph...
This data shows where we are at currently versus where we were in previous years for May. There's a lot of good information in this one picture but there is one large item I want to touch on:
The PENDING Metric states that in previous years, we put around 904 units under contract but this year we put 1,619 units under contract. That's a 79% increase from previous years. Could this surge of buyer activity be from the pent up demand throughout our "stay at home" and "shelter at homes" times?
I know everyone will have different opinions on where the market stands as of now and where it's going in the very near future but I'm looking at the data and thinking we are getting close to our pre-COVID market!
Are YOU considering a move or an investment property? I would love to use my experience, knowledge, and dedication to provide you with the best experience and results possible!