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Local Real Estate Update – April 3, 2020

For those potential Real Estate Buyers and Seller who are struggling with what to do in the near future because of the impact of the Covid-19 epidemic we are providing periodic updates of what is transpiring in the local real estate market. Many of the statistical trends and opinions we send you will undoubtedly change over time as the Coronavirus effects our society in different ways over the next many months.

 

Here are some real estate statistics and opinions of “experts”. The statistics are for the 3 suburban Philly counties (Chester, Delaware, Montgomery)
 

  • In the last 7 days both new listings and new sales dropped by about 60% from the same week last year … a very large decline.
  • However, In the last week there were still 280 properties that came on the market. 77 of these new listings are “Coming Soon”.
  • In the last week there was 416 properties that went to settlement.
  • In the last week there were 155 properties that went under agreement.
  • While the number of properties going under agreement is way down, over 50% were on the market for less than 2 weeks so prices are still stable
  • If the trends continue for a several months the inventory of homes for sale, which is currently very low, will eventually increase compared to demand
  • As supply grows to meet demand the prices will tend to come down … but this will be very circumstantial … depending on the price point.
  • In general “investor” money is flowing out of stocks and into real estate which will put upward pressure on prices.
  • Mortgage rates are low and 78% of lenders predict they will decrease in the near future and 22% predict they will stay as now. 0% predict an increase.

The real estate industry is also moving to virtual house showings and virtual open houses. We are fully prepared and equipped to provide “Virtual” online showings for any home we list. For buyers we are equipped to visit homes for you and then “stream” a live, interactive video back to you while you are safe at home. We expect that buyers will be able to visit homes personally … if owners of homes for sale will allow visits … as long as we adopt appropriate safety procedures. For now personal showings are not allowed.

Real Estate is considered an essential industry by the Federal Government and by many states but Pennsylvania has not yet agreed to the national ruling. If Pennsylvania rules that Real Estate is essential then “in person” home showings will gradually become common again.

We expect more changes to local and state laws regarding the Coronavirus related issues. Please let us know you have any questions we can answer or if there is some real estate statistics we could send to you. For instance … We could set up a special search that would show you recent sales of homes like yours in your immediate neighborhood. As new sales occur in your neighborhood you would get updated immediately so you could see what is happening in your very local market.

 

Please keep safe and well,
Janine & Tom