Back in March, as the nation’s economy was shut down because of the virus crisis, many so called experts were predicting that the real estate market would face a major collapse. Some predicted a 15-20% decline in transactions.
However, six months later, the housing market has never been stronger.
According to Mark Fleming, Chief Economist at First American:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
Here on Cape Cod, the numbers are staggering. Comparing this August to a year ago, median sales prices are up 26% ($430,500 vs. $545,000); closed sales have increased 30.5% (390 vs. 509), and pending sales are up 71%! (355 vs. 607).
Year to date, median sales prices are up 11.2% to $478,000. Closed sales are up 5.1% to 2,818.
In many ways, this seems to defy logic. You might think it’s too good to be true after what we’ve been through.
But, as we have been sharing with you for the past several months, the real estate market was in a strong position before the crisis. Many homeowners also had substantial equity in their property. (Unlike 2008)
The virus caused buyers to temporarily put their plans on hold. In addition, the crisis caused urban dwellers to reconsider their priorities making places like Cape Cod — with open spaces, fresh air and good schools — attractive.
With the situation currently on a somewhat even keel, buyers are moving forward as the statistics show. Sellers are now in a strong position to realize a solid return on investment in their property, while at the same time giving themselves an opportunity to make the move that they have been considering.
Not sure if this is your time? We’d be happy to help you review your options. Advising clients has been our full time job for 21 years, not a part-time hobby.
Let’s connect at 508-568-8191 or [email protected] to start the conversation.
Stay healthy. Stay optimistic.
Mari and Hank