We have heard many Realtors state that summer was going to be the “new spring” in 2020 and predictions couldn’t be more accurate.
As the May market grew into June we continued to see transactional volume increase and a distinct Seller’s Market forming unlike anything we have ever seen before.
When trying to make sense of the market and where it may be going, a reference to simple supply and demand economic models can explain a lot.
Looking back to April we saw a drastic decrease in inventory and transactional volume.
As we navigated through these times we found that many families affected financially by Covid simply held tight. They minimized spending, reduced risk, simplified. It was almost a hold pattern to see through challenging times.
On the other end of the scale we have seen many families unaffected financially by Covid. These families now actually have more cash at hand than ever before. They too have had little to spend on…likely at home more than ever before, growing unhappy with their surroundings…now looking for opportunity to improve their home situation. To many, this means more space, a larger home, a smaller community. To others this means the opportunity to work from home, a search now to find the perfect home that they can work from …a search that was recently many years away is now more imminent.
When you add this out of town interest to our local market, naturally lower priced homes see the largest pressure. We have also seen immense pressure through all segments of the market on up to million plus homes.
A few local examples that we recently listed and sold will demonstrate this.
Clearly, for those looking to sell, this is an unprecedented time!
With transactional volume continuing to increase and inventory improving….it appears that this “spring market” will continue through July into August.
With 35 buyers missing out on the above properties alone….it will take a tremendous amount of “supply” to meet the current “demand” in our local market.
If you or someone you know may be thinking of a move, lets arrange a short conversation to establish whether this may in fact be the right time to act.
What is to come? We wish we had a crystal ball.
Several things we do know…
As our economy opens up government assistance will come to an end. Wage subsidy will cease and mortgage deferrals will also run out. Many cities will feel the effects of a student population that simply “attends school” from home. Many companies will also be forced to consider current leases and whether their space is viable given the new world where it is impossible to shuttle their work force up and down elevators to their workplace. We have started to see the odd business closing its doors. This will no doubt become more common in the months to come.
The true, long term effects of Covid are yet to be seen.
As your local Realtors of choice, we are here to help!
We have been there for our community in many ways since April.
From an epic Fish Fry at the Goofie Newfie, to Mother’s Day with WR Designs, to many local business promotions and weekly lunch deliveries to over 80 local families in need, we continue to serve our community in any way that we can!
Should you or someone you know have a need, please don’t hesitate to reach out.
Wishing you all the very best this summer!
Enjoy this special time with those that mean the most to you!
** For additional statistics for the local real estate market for the month of June – check out the pdf below!