The Central Ohio Housing Market Update for February 2020 is fantastic. Sales increased by 13.3%, pending contracts are up by 10.8%, and the median sales price soared by 10.7%.
Unfortunately, this does not reflect what happened in the past 2 weeks and how the Coronavirus will impact real estate.
Let me explain what’s going on with housing right now, and what I recommend you do if you are buying or selling.
The February data are at the end of the email.
Free Falling Stock Market Won’t Wipe Out Home Value Gains
We may be heading into a recession. However, the sudden drop in stock values has NO IMPACT on home prices. As a matter of fact, home values have increased during 3 of the last 5 recessions.
Unlike the great recession of 2008, this crisis is not caused by mortgage defaults. The housing market is stronger than ever and can easily weather a general economic downturn.
9/11 has a lot in common with what is happening today.
People are avoiding crowds and similar sectors of the economy are under pressure. After the 9/11 terrorist attacks, the stock market fell. However, the housing market wasn’t affected, and home prices actually appreciated.
Most experts believe that home sales will drop by 10% this spring. The buying frenzy we usually see in April and May will likely be delayed by a few months till mid-summer.
Buyer Interest Has Slowed
The number of showings has decreased in the past week as you can see in the chart below. Buyers are worried about the future of their jobs. That’s why some will delay a move until we recover from the crisis.
Recommendations for Buyers
Do not delay your home search if your job is safe.
You will face less competition. Mortgage rates are extremely low, and you may even get discounted offers accepted, as sellers become more motivated during the crisis.
No Decline in Listings
We did not see a decline in listings, yet. That’s because sellers usually plan 30 to 60 days ahead before they put their homes on the market.
Below you can see a chart of daily new listings in the Columbus MLS.
Recommendations for Homeowners Planning to Sell
Do not wait! No one knows how long the crisis will last. It may take a little longer to sell your house. At this stage of the pandemic the housing market is less affected by layoffs and a slowdown of the economy.
When you list with me, we will take all precautions to ensure you and your family are safe and avoid any possibility of infection.
February 2020 Housing Stats
Until February the housing market has been stronger than a year ago.
Click this link to see detailed February 2020 Housing Data.
Here are the highlights (numbers compared to the same month a year ago):
- Closed Transactions – 1,976 – UP by 13.3%
- Pending Contracts – 2,740 – UP by 10.8%
- Inventory for Sale – 3,256 – DOWN by 9.9%
- New Listings – 2,455 – UP by 9.2%
- Days on Market – 43 – DOWN by 8.5%
- Average Sales Price – $235,371 – UP by 6.7%
Stay Safe! If you need any help in or outside of real estate … Call or text me at (614) 975-9650.