Friday, May 1, 2020 / by Christopher Barca
While the stock market recovered significantly in March, the effects of COVID-19 to the economy continue to build. In just the last four weeks, more than 20 million people filed initial unemployment claims according to the United States Department of Labor, fueled by stay at home orders and a slowdown of economic activity across the country. Added to the unemployment claims from March, more than 30 million people have become unemployed since COVID-19 has become widespread in the U.S. In the face of these challenging times, real estate activity in April slowed significantly.
New Listings decreased 41.9 percent for Single Family homes and 23.9 percent for Condominium homes. Pending Sales decreased 57.8 percent for Single Family homes and 71.5 percent for Condominium homes. Inventory decreased 18.9 percent for Single Family homes and 1.3 percent for Condominium homes.
Median Sales Price decreased 7.9 percent to $754,523 for Single Family homes but increased 35.6 percent to $602,494 for Condominium homes. Days on Market increased 33.6 percent for Single Family homes and 48.1 percent for Condominium homes. Months Supply of Inventory decreased 12.5 percent for Single Family homes but increased 9.3 percent for Condominium homes.
While the effect of COVID-19 continues to vary widely across the country, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.