How Has COVID-19 Affected Real Estate?

The latest numbers are in and I’m excited to share them with you.

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As the market is opening back up and restrictions are being eased, I wanted to give you a quick update on what we’re seeing out there right now in real estate.

Most notably, our number of listings this year is way down from where it was at this time last year. From March 15 through May 29 of 2019, we had 1,330 new listings on the market. This year during the same period, we’ve had only 923. That’s had an effect on the final sale price and supply of homes.

The number of closings from March 15 through May 29 of 2019 was 963. This year, they dropped to 887. That’s not much of a drop, but it has led to a big increase in the median sale price, which rose from $283,000 to $315,000. The median list price is up from $318,276 to $338,663.

We were on track to see an increase in listings before the pandemic hit.

With about the same number of buyers looking at homes and fewer listings for them to purchase, the increased competition has led to a bigger rise in prices.

As we were heading into this crisis, we actually had 12% more listings in the first couple of months of this year compared to last year. That has certainly slowed down in the months since, and it has led to better numbers for sellers.

There has been an artificial bump in days on market due to the process being a little bit longer. It’s mainly because we’re taking the crisis seriously and making sure all of our buyers and sellers buy and sell safely.

Here are a few more additional stats for the Dane County real estate market in May (as of the recording of this video):

  • There are 445 listings on the market without an accepted offer, while there are 702 more properties that have an accepted offer.
  • We have less than a 1.2-month supply of homes
  • New listings were actually up from last year in March, but they dropped well below that mark in April. There were 519 new listings in April 2019, but there were only 324 in April 2020.
  • The average sale price is up to $323,012 and the median sale price is up to $291,000 (as of May 29)
  • Listings from March 15 to May 29 are down 30% from where they were in the same period in 2019.

If you are thinking of buying, there’s more competition, but there are also very low interest rates. It’s a great time to refinance, too.

If you have any questions for me about what’s going on, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

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