Our market has certainly taken a hit lately, but here’s why I’m optimistic.
The April numbers are in for our real estate market. When compared to April 2019, our number of sales is down by around 63%. Unfortunately, that’s to be expected as we’ve been on lockdown since mid-March.
Active listings are down just 1.1% from March, but the average price is down 9%. Part of this is because we’ve seen much fewer sales overall. We have about 3.5 months of inventory right now after having just 1.3 months in March.
The total number of sales for April in 2019 was 9,042. In 2020, we had just 2,975. The average price, meanwhile, remained flat at around $820,000. We were on pace to see some nice appreciation as we began 2020, but we took a hit by anywhere from 5% to 10% in the second quarter because of the COVID-19 pandemic.
Even though inventory has nearly tripled in the last month, we’re still technically in a strong seller’s market. We only have 3.5 months’ worth of inventory right now, while a balanced market would have at least six.
If you look at the past decade of April sales, it’s clear that this is an anomaly. I believe once things get back to a little more normal in May or June, there is a lot of pent-up demand that could come out and give us a very strong summer and fall.
If you have questions about anything I talked about today or related to real estate, don’t hesitate to reach out via phone or email.