Atlanta Supply & Demand During Covid-19
Full Transcript of the Video Here:
If you are like most people, you know several real estate agents and see our posts on Facebook, get our emails and take our phone calls. As a real estate agent myself, I have hundreds of friends on sending these messages. For the last week, I’ve seen diametrically opposed messaging from the agent community about how COVID-19 is affecting the market. Obviously, they all can’t be correct!!!
If you have any questions about any of this, please call or text me or drop a comment below…I’ll help any way I can.
For now, let’s compare last week to the same week one year ago and see what we find. For this analysis, I’ve used homes between $100,000 and $1,000,000.
Last week, 2,111 homes came on the market. Last year, 2,343 came on. That’s 9.9% fewer new listings this year.
Last week, 1,337 houses went pending and last year, 1,740 homes did. That’s a drop of 23% and a larger drop in new under contract homes than the drop for new listings. The pending to active ratio, which we use as a leading indicator is 63% now and 74% last year. The higher the number the better.
This should be expected given the global crisis. If we stopped here, we might think this is going to have a significant long term effect on the market and supply and demand would shift too fast for the market to handle. If it continued for a few months, that might be true. Prices would drop and the conversations would certainly change.
There’s more going on though and to jump to that sort of conclusion would be irresponsible.
Inventory is coming off the market quickly as a result of the crisis. Even people that came on the market recently are removing their homes just as quickly.
The number of withdrawn listings is growing fast. Last week there were 334 and last year there were 267. Expired listings are higher also and we don’t expect as many people re-list quickly given the current conditions. This will help keep inventory levels from rising too fast and absorption rates shifting us into a buyers market. For now.
Tomorrow, I’ll share some thoughts on what all this means for buyers and sellers and what I think you should be doing right now to be prepared and touch on the virtual this and that (hint: none of the virtual stuff is new or difficult for us to do for you). Call or text me with any questions.
For now, thanks for watching and stay safe!