How Did the Lockdown Affect Real Estate? – May Real Estate Stats
During the month of April, the local real estate market was at a near-standstill due to the Shelter in Place Order. Real estate was eventually determined an “essential business” during the Shelter in Place Order for the month of April, but only to service pending sales. As a result, the Montrose real estate market experienced a 42% drop in showings for the month of April and a 51% drop in properties going under contract relative to April of last year.
Home owners and their agents were able to negotiate 98% of their list price in the previous months headed into April, illustrating strong demand before the pandemic and Shelter in Place Order. Further, the median sales price for Montrose is up 7.8% from a year ago, while the number of homes sold was up an impressive 25%.
April could be considered as a lost month, as reflected in the 51% drop in pending sales, which will most likely translate into an anemic second quarter for home sales. The Montrose market had a great start to the year; hopes are high that reopenings continue that momentum in the fall selling season.
The effects on the national real estate market are looking quite similar to the Montrose market. The number of homes sold plummeted 8.5% from the same period last year, while the median sales price in March was up 8%, at $280,600. Pending homes sales plunged 20.8% due to the COVID19 pandemic and stay-at-home orders.
Volatility in the mortgage markets has become an issue as forbearance, and the risk of future non-payments by home owners is expected in months ahead. Some mortgage lenders are tightening requirements and holding back from more riskier borrowers for obvious reasons. Local lenders are beginning to portfolio loans as the bigger national banks take a back seat. The Federal Reserve’s purchase of mortgage backed securities has leveled mortgage markets as of recent, with a 30-year fixed conventional mortgage rate hovering at 3.23%.
Thinking about Buying or Selling? Call or Text: 970-417-9375
Statistics gathered from CREN MLS, criteria are all residential not including mobile or manufactured housing in Montrose. Copyright 2020 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtors, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, InfoSparks, YCharts, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2020. All Rights Reserved.