A recent report from Zillow forecasts a 2% to 3% decrease in home prices this year. Top NAR economist Lawrence Yun countered that with a projection of 1.3% growth over the course of 2020. Of course, that’s all on a national level, and we know real estate is hyperlocal—what’s been the story here?
We’ve seen the number of inquiries jump dramatically over the last seven to 10 days. As the weather improves and the economy starts to open back up, more and more people are thinking about returning to the housing market.
The number of mortgage applications to purchase has jumped up by 7% over the past week alone, offering another encouraging indicator that buyer activity is rising. It helps that affordability has gotten better thanks to interest rates having once again hit a historic low.
At 1:43 in the video above, you’ll see a graph chronicling median sale prices over the past three years. As of April 2020, the median sale price is $600,000, up 3.4% year over year. These figures take into account transactions that took place after the shelter-in-place ordinances went into effect, meaning that prices continue to rise despite unprecedented conditions caused by the coronavirus.
Listings are down nearly 30% year over year, and new listings in particular have dropped off by 41%—the yearly real estate cycle of slower and busier seasons has been broken. That being said, the lack of inventory is expected to keep demand high and prices stout.
If you’re thinking about buying, we’d be happy to arrange virtual tours or in-person showings with adequate PPE and social distancing protocols. These are strange times to buy or sell, but real estate is certainly still moving.
To end things on a positive note, I’m excited to share that we have a mural that needs to be redone. Benchmark Brewing left behind a large mural on their building in the heart of Bay Park after unfortunately going bankrupt. We want to put up a new, vinyl-printed copy to hopefully lift our community’s spirit through art. The new mural could be one large piece or a collage of several smaller images. If you have some awesome ideas for a mural you’d like to share with us, send over a sketch. We’ll get them all printed out so people can vote on them!
In the meantime, give us a call or shoot an email if we can help you out in any way. We’re always here to be a resource for you.