How Has COVID-19 Affected the Central PA Market?

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.

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.

Why Is It an Ideal Time to Sell?

Here’s why it’s an ideal time to sell in our current real estate market.

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.

There are many causes for concern in our world today, but we also have reasons to be grateful. If you’re a seller, or have considered selling, one of those reasons is the current strong buyer demand in our real estate market. 

Homebuyers are out there in huge numbers with a voracious appetite to buy. Their only hindrance is our historically low inventory. Also, the national average for homes' days on market is just under 20 days. This is the lowest number of homes and the shortest selling span that has ever been recorded. 

On top of that, home mortgage rates have hit a 50-year low, but they won’t last forever. Buyers can borrow $250,000 and pay just $1,350 per month right now. These are the lowest interest rates in 50 years. It’s an ideal time to sell your house for top dollar and purchase a property that better suits your needs.

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Homebuyers are out there in huge numbers with a voracious appetite to buy.

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Selling when you have the lowest amount of competition is in your best interest, so be bold! It’s a seller’s market throughout most of Central Pennsylvania, so take advantage of these opportunities! 

Contract my team via phone or email today and we’ll make sure you benefit from these historic conditions. If you have any questions about our market or real estate in general, feel free to reach out to us as well. We’d love to help you.

3 Changes to Our Real Estate Market

Here are the three biggest changes to note in our Harrisburg market.

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.
Schedule a Consultation with us today.

What are the biggest changes that have occurred in our market due to COVID-19, and what can you do to take advantage of these adjustments? 

1. Interest rates have dropped. In April 2019, rates hovered around 4%, and everyone thought they wouldn’t get any lower. However, now they’ve decreased to about 3%. Though they’re beginning to creep back up, they’re still historically low. Consider locking in a low interest rate now; just because you get approved for a house doesn’t mean you’ll get the lowest rate. They’re predicated on several factors—two of the most crucial are your debt ratio and your credit score.

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You shouldn’t be timing the market; it’s time to be in the market.

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To qualify for a low rate, the best things you can do are improve your credit score and decrease your debt. If you’re currently a homeowner, you can take advantage of the low rates through refinancing. 

2. The peak listing season has shifted. Usually, new listings steadily increase from February to May, meaning spring is the peak season. However, due to the pandemic,  the peak time for 2020 is June through August. You shouldn’t be timing the market; it’s time to be in the market. Don’t wait until autumn or spring to list. In a traditional market, many real estate agents advise their clients to list in these seasons, but in this environment, you should list now while inventory is so low. This will ensure you’ll have the best home selling options possible. 

3. The median price has increased. After more than a decade of decline, the year-over-year price has increased. Over the last year, the median price has risen from $212,000 to $228,000. We don’t know what will happen in the future, so sellers should take advantage of the market now. The best time to buy is whenever you can. 

The housing market will always increase over time. For example, if you bought a home for $250,000 with a mortgage of $1,500 per month, you’d generate $50,000 worth of equity in just five years. If you rented that same home for that same monthly payment for five years, you would end up paying someone else $90,000.

If you have further questions about our 2020 market or any real estate needs, we can help. Email us or schedule a free, 15-minute video or phone consultation, and let us help you navigate your real estate needs. Stay safe out there!