Different Prices Affected Differently By COVID-19
If you are looking for information about how COVID-19 may be effecting the real estate market, how you should make an offer, or if you should sell your home, the info in this video may be helpful for you.
My name is Ryan Ward and I'm the team leader at Premier Atlanta Real Estate. In previous videos, I've indicated effects may be different based on hyperlocal areas or price points due to COVID-19. Today, I chose a few areas to compare against last year and also broke down Metro Atlanta by price to see what I could find.
In an effort to keep the video short, the first part of what I see is that the difference seems related more to price than to area as it relates to COVID-19.
In all markets, hyperlocal information remains essential to make any informed real estate decision and doesn't seem to be uniquely impacted by the virus. Here is what I found looking at single family homes that went under contract from April 10 - April 29 this year vs the same time last year.
Total pending sales this year were 3,974 and 5,153 last year which is a drop of 23% and consistent with what we have seen in previous weeks.
Here is how it breaks down by price bracket:
100K-200K = 960 vs 1268, 24% Down
200K-400K = 2275 vs 2798, 19% Down
400K-600K = 589 vs 784, 25% Down
600K-800K = 146 vs 271, 46% Down
800K-1000K = 68 vs 89, 24% Down
1000K-Up = 61 vs 104, 42% Down
As you can see if you paused the video, broken down this way it's difficult to find a pattern. Here is a cleaner way to view and understand it:
Homes under $500,000 are down 21%
Homes over $500,000 are down 36%
From this we can now clearly see that the market above $500,000 has been impacted more adversely by COVID-19 than homes under $500,000. It's outside the scope of this video as to why that is the case and we do see a natural break at around $500,000.
Based on this information and from what we are seeing in the field in the last week for our team and other active agents I’ve spoken with, I would expect to see homes sales under $500,000 to start trending up to volumes closer to last year beginning now.
For the segment of homes over $500,000, it may take another month before the market will resume pre COVID-19 sales volume. If this is the case, I believe the market will be able to absorb the hit as we begin to open the economy back up.
If you have any questions, drop a comment below, call or text me or shoot me a message. Until next time, thanks for watching and stay healthy!
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