Hello - I hope this newsletter finds you all safe and healthy. What a crazy time we are currently living in. Who would ever thought this is what the start of 2020 would look like.
May 2020 Stacie Muller Team Real Estate Insider
I hope this newsletter finds you all safe and healthy. What a crazy time we are currently living in. Who would ever thought this is what the start of 2020 would look like. Many ask how our Real Estate market was affected and honestly it put our market on a slight pause. If you look back on early 2020 (Jan/Feb) you saw listings flying off the market at rapid pace. Sellers were getting multiple offers and buyers were having to come in with their best offers to get their offer accepted. And while the market has been on a slight pause in the area of listings not coming on as fast, our market still remains healthy. Overall I don't think this pandemic will adversely affect our housing market.
Below are some market stats from the 1Q2020
Here is some great information I took from the ARMLS STATS report by Tom Ruff:
"When 2020 ends and our final sales numbers are published, we’ll quite likely see three asterisks: BC, DC and AC. Before Corona. During Corona. After Corona. We know where our market was BC. BC: We began 2020 with strong tailwinds, and with the first quarter numbers in the books, our numbers were solid. While January through March seem like ancient history, the numbers are undeniable. It seems trivial to report the first quarter while looking at the second quarter leading indicators, but the first quarter shows where we were, and what is possible AC. The first quarter of 2020 reported the highest gross dollar volume sales in ARMLS history. DC: At first blush, it would also be very easy to interpret a drop in the median list price as a leading indicator of falling prices. This is not always the case. We were able to validate our suspicions on this data element. The drop in the median list price the final week of March was not indicative of falling prices, but instead had to do with the“blend” of new listings. By comparing individual list prices to the automated valuation for each listing, we were able to conclude the decline in the median list price was directly attributed to the value of the new properties listed. The median value of new listings between March 24 and March 31 was 7% lower than median values for prior weeks. In short, we were seeing far fewer high-end listings. When the April closing numbers are reported, we will see a decline in our pricing metrics, but remember that this decline has more to do with the mix of properties sold as opposed to a drop in prices."
Like I said before they termed our market as being on PAUSE. See below what ARMLS Stats report by Tom Ruff had to say:
"A few observations while our market pauses.
• ibuyers have suspended home buying activity. We will see limited buying and selling activity in April as they only honor prior contracts.
• Foreclosure activity in April will be very light. We have seen a limited number of new notices and virtually no actual foreclosures. The reason: forbearance.
• Investors are facing additional challenges as hard money lenders are withdrawing from the market completely or raising rates. Wholesalers are facing a multitude of challenges as well.
• We’re seeing a jump in virtual tours as agents and prospective buyers adapt to social distancing guidelines.
• Demand for new homes is falling and will continue to drop into the third quarter according to Belfiore Real Estate consulting.
• Real Estate investors that fix and flip will see their market share of sales increase in April. Covid-19 will not keep their finished projects off the market. Their purchases are leveraged, and the houses are vacant. Time is money. Their challenges will lie in acquiring new inventory.
• Our market will adapt to the challenges Covid-19 presents. For example, title agencies are offering drive through services for homebuyers.
• The biggest challenges in commercial real estate will be related to the number of people employed in the service industries, such as retail and restaurants as well as tourism. Retail was vulnerable before the virus; the effects may go beyond short term."
With new information coming out daily about our economy opening up I will hopefully have some AC news to share with you next month.
Again I hope this finds you healthy and safe!
Chandler Homes for sale - $200k-$500k - https://bit.ly/3deX6S4
Chandler Homes for sale - $500k+ - https://bit.ly/2W0F1Bs
Gilbert Homes for Sale - $200k- $500k - https://bit.ly/3fk9vWQ
Gilbert Homes for Sale - $500K + - https://bit.ly/2L2lY3r
Please reach out for listings in other areas. I am happy to share them with you.
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