Market Update May 13, 2020
– Sales down 7% – Prices up 4.5% Almost back to normal. When you hear about the real estate market from the Statistics just published by RMLS for the month of April, which are being reported broadly by the local media, you may have a panic attack. It’s not that bad. We saw a huge drop in activity, (both new listings and new pendings) in the last two weeks of March and into early April. That started to turn around the second week of April and each week since the numbers have gone up. Many homes are back to selling in a few days. Many are getting multiple offers again. Not as many as in February and early March, but close to what was happening this time last year.
In the past two weeks, the number of new sales in the Portland Metro area was 7% below the same period last year. So pretty close to normal. We had 42% fewer sales in the week ending April 5th by comparison. The chart below shows the 2019 Pending rate in Blue and 2020 in Orange. Week 1 is March 2-9. Week 10 is May 4 -10. Through all of this, the average sale price in Portland Metro for April is up 4.5% from April 2019. Now that’s a shocker, I’ll bet you didn’t know was coming. That may show a statistical “dip” once we have data for May. Most of the homes that went pending in early April will close in May. I believe more homes under $500,000 are selling than the upper end of the market.
What’s Our New Normal?
We have pivoted our business models to be responsive to the requirement of social distancing and concern for the safety of everyone involved in a real estate transaction. We have multiple listings in the funnel and more coming. Those we have listed have gotten good showings. Two offers came together in April, plus two buyers got houses. The team had several more sales both listings and buyers. So if you need to sell, or were thinking about selling this year, let us know and let’s work together on a plan that meets your goals and gets you where you want to be next.
For our buyers, we are continuing to show homes when you are ready. We encourage looking at all the online information, watching videos of homes, and studying the 3-D if available. The market is shifting to the top companies and agents that invest in the best marketing (like we do). Those with the best photos, videos, and 3-D modeling are the homes selling faster. Cutting corners no longer works. We encourage driving by some of these homes in the safety of your own car and then we tour your favorites.
We have also embraced zoom meetings for many things, including interacting with our team and members of our office. Training is all online, weekly office meetings, and weekly happy hours with friends. Zoom is a wonderful resource. I just upgraded to a paid plan so we can use it more fully going forward. I think this is one of those habits that just might be around for the long term now that we have added it to our list of tools.