COVID-19 Affect on the Atlanta Real Estate Market April 1-7
Full Transcript Here:
We're certainly all in unique times and the real estate market is not immune to the changes happening around us. Many buyers think now is the time to make low offers and many sellers are waiting on the sidelines - for the "right time" to list their home. In the meantime, the market is moving along - faster than you might think. I'm Ryan Ward with PARE and I'm going look at the numbers and see if we can get a little perspective on all of this in just about 2 minutes!
If you have any questions, please call, text me or drop a comment below...
For now, let’s compare last week to the same week one year ago and see what we find. I’ve used homes between $100,000 and $1,000,000 for this.
Last week, 1,203 houses went under contract and last year, 1,643 homes did. That’s a drop of 26% from last year and a smaller drop than the drop for new listings. The pending to active ratio, which we use as a leading indicator is 75% now and 74% last year. More good news.
Fewer pending sales should be expected during this time. However, since fewer new listings are entering the market than are selling, inventory is actually reducing. To further help keep the supply in check, more homes are coming off the market than last year as well. Last week there were 648 withdrawn and expired listings. Last year at the same time there were 434. More good news. New listings - pending sales - off market = 247 fewer homes than we started last week with. That means supply is not outstripping demand. This should mean that when the markets reopen completely, it doesn't look like we will have shifted into a buyers market.
Since demand is simply down and showings are down, I still wouldn't list my house unless I really had to sell though. Just wait a few more weeks. When the market reopens fully and demand comes back, it's unlikely prices will see any long term downward pressure - unless this continues all the way through May. If things reopen for the most part in May, we should all be fine.
For now, thanks for watching and stay healthy!