Here is a look at how COVID-19 has affected our market and what you can expect going forward.
There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers.
If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.
If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.
One of the top questions we’ve received from clients lately has been about the impact of the pandemic on the housing market. Naturally, buyers and sellers are nervous given the present state of the world, so today I wanted to share some of my findings.
Many real estate activities are being conducted either remotely or with limited in-person contact. For those activities that must be done in person, we are prepared to do them safely.
With respect to home prices, many buyers thought that the drop in the stock market, the rate of unemployment, and the lasting effects of COVID were going to create significant price drops. Sellers are afraid that prices will fall or there will be a lack of activity, but that’s just not the current state of our market here in Central Pennsylvania. Buyers haven’t left the marketplace, though, and this ongoing demand combined with low inventory has caused a dramatic increase in the average home sale price here in Central PA. Remember: Real estate is local!
The Greater Harrisburg Association of Realtors (GHAR) recently published some data about how COVID has affected home prices:
As of July 1, it looks as though the monthly number of homes for sale and the number of closed homes has decreased by nearly 50% when comparing May 2020 to May 2019. Many buyers have been shaken by the uncertainty that COVID brought to our sense of public safety, as well as the financial and housing markets.
Inventory decreased by approximately 25% in March, April, and May. New listings added in Central PA decreased from the 3,470 that were added in May 2019 to just 2,319 new listings added in May 2020.
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Any consistently large moves in a particular direction will be critical indicators of where this market is going.
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Why are these trends occurring? Well, when the governor announced the stay-at-home order on March 19, the daily number of new listings plummeted from approximately 110 per day to just 40 per day. Realtors were no longer able to meet with clients in person and all activities had to be performed remotely. This trend continued through the remainder of March, April, and early May. This information is contrasted by the uptick of new listings added in the months of late May, June, and July as in-person activities resumed in Central PA.
We do need to keep in mind, however, that this transactional data tells a story of the market in the past. To get a feel for how the market will look moving forward, we look at indicators like the number of showings our listings are generating as well as the conversations that our agents are having with clients. We need to keep a close eye on the daily inventory and pending/closed numbers; any consistently large moves in a particular direction will be critical indicators of where this market is heading.
Don’t hesitate to reach out to us with any questions you have or updates you’d like to hear. Our listing specialists are ready to help you safely sell your home during this tumultuous time, and our buyer specialists are ready to help you safely secure your next home. Give us a call or send an email to schedule a free, 15-minute video or phone consultation so we can help you navigate your real estate needs.
