Yes, they are! Is the market up? Is the market down? What’s going on? If you are looking at market reports and asking yourself these questions, don’t worry because you are not alone. The effects of Covid-19 on the real estate market have certainly changed the usual patterns. And as we know, the media has a way of looking at things out of context and creating spin. Hopefully, I can shed some light.
The numbers are in for single family home sales in Mecklenburg County in May, and they show that prices have declined, and sales are down. Average sales price has fallen 3%, and the number of sales has fallen 38% from the same month last year. Meanwhile, average time on market is down and supply is holding steady. It is still a seller’s market.
So why am I not concerned? Simple. Pending sales, which are homes under contract but not yet closed, are actually up 7% over the same period last year. The first month of the coronovirus pandemic lockdown kept people from moving ahead with contracts. That shows in the sharp decline in home sales and short term, minor dip in prices. But with pending sales spiking back up, we can be sure to expect sales to follow in next months numbers.
The world has been working from home over the past few months. And while that has been happening, people have been discovering parts of their homes that aren’t working for them in this new normal. Home improvement is way up, and when renovations are not realistic, moving is another option. The pending sales show that, and I think we can expect the rest of the year to be strong in terms of real estate sales for these reasons.
In fact, if you were thinking about making a purchase but were worried that prices had reached all time highs, this little temporary dip might be just what you were waiting for. And to boot, interest rates are still low!
This week we’ll send our monthly E-Newsletter. Here’s a quick summary of the numbers comparing May single family home sales in Mecklenburg county to the prior month and the same month last year.
- Home sales are down 10% from last month and 38% from last year.
- Average sales price is down 8% from last month and 3% from last year.
- Median sales price is down 5% from last month, but up 4% from last year.
- Average price per square foot is down 5% from last month and 4% from last year.
- Average time on market is down 11% from last month and 17% from last year.
- Pending sales are up 28% from last month and 7% from last year.
- Supply is up 13% from last month, but down 17% from last year.
- Mortgage rates at 3.23% are about even with last month, but down from 4.1% last year.
- Average house payment is down 9% from last month and down 13% from last year.