According to local MLS data, as of June 30, there has been a 28% increase in sales since the low point in April. There were more closed transactions in June than in March, prior to initial COVID-19 related closures. Low inventories in key price-points, combined with low interest rates are key elements of the current housing market. One interesting emerging pattern is the decrease in the number of properties buyers are viewing, and/or engaging with prior to making an offer. As realtors, we hope this trend will stay with us.
- 28% increase in sales since April, 2020. And a slight increase over total closed sales in March 2020 – business that was generated prior to the disruption locally by COVID-19.
- Overall showing activity is down almost 9% year over year, this just confirms that buyers are being more intentional and selective in their search and limiting the number of homes they spend actively searching and viewing before making a decision.
- The 30-year fixed-rate mortgage set a new record again this week as rates averaged 3.13%, the lowest average rate in Freddie Mac’s records, which date back to 1971
Additional updates from a variety of housing-centered organizations, including the Housing Finance Policy Center provide further insight:
“The housing market has held up much better than expected,” Laurie Goodman, co-director of the Housing Finance Policy Center at Urban Institute, said during the webinar. “Homeowners have been much less affected by COVID-19 than renters.”
A big reason for that is because the housing market has been underbuilding and unable to keep up with population demand since 2009, Goodman said. The country is undersupplied by an estimated 2.5 million housing units. “The supply-and-demand imbalance is continuing to put upward pressure on home prices and is causing them to rise,” Goodman added.