Many people have asked me how the real estate market is doing. That is honestly a pretty loaded question these days!
There is no blanket answer because 2020 is experiencing a variety of market conditions depending on the location and price point.
2020 has been full of historic events that have impacted all of our lives. Most industries took a hit as they continue to adapt to the circumstances surrounding the coronavirus pandemic. Real Estate is no different.
Despite all the uncertainty, changes in life situations will always drive the need for housing. Changes to careers, marriage, children… Suitable Housing that fits the various needs of our neighbors will always be essential.
Being licensed in both PA and NJ, I study the market trends in both the Philadelphia and South NJ communities. As would be expected, the numbers are being skewed this year as a result of the pandemic.
In New Jersey, real estate never fully stopped. We were asked to pump the brakes and limit our in person showings only to those who couldn’t wait until we had an appropriate plan to safely proceed. We were advised to follow social distancing protocols and exhaust our virtual options before requesting in person tours.
Pennsylvania was under stricter restrictions. PA was not considered ‘essential business’ and was mostly shut down from mid-March until the end of May. Since opening back up, certain neighborhoods have seen a surge of buyers who are eager to purchase as soon as possible.
Traditionally, spring is when we see the real estate market really boom in our area. I looked at the market statistics to in both Philadelphia and Camden County, NJ. I wanted to see how the coronavirus pandemic impacted the month of May (a month that is traditionally very busy).
I’m going to focus on the NJ numbers since PA real estate was not fully active in May.
In looking at Camden County, New Jersey… the month of May 2020 saw a dramatic drop (about 30%) in housing inventory when compared to May 2019.
Note that the previous few years have already been considered low compared to the high buyer demand, so dropping even further is pretty significant.
The stat I found most interesting was the ‘pending’ homes. The number of homes that went under contract in May remained about the same from 2019 to 2020.
What does this mean? The housing inventory is obviously very low, but there are still plenty of qualified buyers anxious to purchase a home and take advantage of the low interest rates.
Supply & Demand… In those neighborhoods with a high demand of home buyers and a low supply of properties for sale, the real estate market favors sellers. Buyers are competing over the well maintained, properly priced homes. This will sometimes bring multiple competitive offers and could drive prices over the asking price.
SUMMARY
The low mortgage interest rates continue to make it a great time to buy. BUT WE NEED MORE HOMES FOR SALE! If you have been on the fence about selling your home, let’s talk now.
The historic events of 2020 simply delayed the spring real estate market boom. Now that many are beginning to feel more confident about how to navigate the ‘new norm’ following the safety recommendations from the CDC, it’s likely we see activity begin to increase over the summer months and possibly continue into the fall.
My team is well versed on all the virtual tools, resources, and new safety protocols to forge ahead.
BUYERS: If you are considering a home purchase, low interest rates provide you with more buying power! Reach out today and I will point you in the right direction to learn what your financial options are.
SELLERS: If you are considering selling a home, this is a great time to try to get top value for your property! Contact me so we can discuss the statistics in your area, determine your home’s current value, and discuss if now is the right time for you to sell.