Home Buying in the “Covid” Market Real Estate Rebounds, Despite Pandemic
Story & Charts Contributed by Annette Newcomb/President, North Central Board of Realtors Almost a year into the pandemic it is no surprise COVID-19 has rates. The median sales price increased between April and May from affected almost everything. Real estate markets throughout the $87,000 to $117,450. country have been influenced, including our How did less showings, less online searches local real estate market. Longtime, local realtors and less offers presented transform into a have had the opportunity to work in buyer’s North Central Board of Realtors toilet paper COVID-19 market? Several things. markets, seller’s markets and many years of Board of Directors First, the already low mortgages rates became level market conditions. We are now working in even lower. Second, the federal government what is best described as “COVID-19” market. In President: Annette Newcomb provided COVID-19 stimulus that allowed some many ways, it’s similar to the toilet paper issue of local employers to keep their doors open, spring/summer 2020. It was in high demand, but President Elect: Steve Hermann more employees to continue working and gave there was a low supply and many bare shelves. Treasurer: Vie Bottger more households confidence in their ability to Likewise, there is a demand for housing, but the pay mortgages or lease payments. Finally, our shelves are sparse, so to speak. Secretary: Marilyn Gregg state government deemed real estate activities However, the real estate market in our area looked as critical. This allowed real estate agents, 2-Year Director: Robin Smith different at the beginning of the pandemic. Many appraisers, lenders and title companies to community business owners were worried about continue to work. It also allowed sellers, buyers 1-Year Director: Michele Evans the economy when COVID-19 first became and renters to close on transactions. Past President: Mary Beth Moore such a large part of our lives. Some businesses Additionally, our community business leaders were forced to temporarily close, and countless State Director: Donna Reid were true bosses, carrying out business in employee hours were reduced or eliminated. flexible, unique and safe ways to bypass a Very scary times, indeed. Since real estate industry portion of the economic effects of COVID-19. is heavily influenced by environmental, political, Realtors and property owners hosted virtual open houses, scheduled social and broader economic forces, there was genuine concern that private video showings and benefited by distributing listings on social the real estate market could take a severe dive. There was reason to be worried. When COVID-19 detonated last spring and for a few weeks after, real estate closings were blowing apart, closings were postponed and buyers were not doing as much looking – which was fine because many sellers were not allowing them in their properties anyway. Things were feeling a bit shaky for the real estate industry. According to data gathered from Realtor.com, home showings per listing in the U.S. were down over 40% in April 2020 compared with the same period in 2019, and other measures of housing demand such as online search activity, inquiries for agents and presented offers for property were also down. At the onset, things seemed pretty bleak for our local housing market. According to data from North Central Board of Realtors (NCBOR), there were 22 fewer residential closings recorded in April 2020 than March 2020 with only a slight increase from April to May. This was overly concerning, considering spring is usually one of the busiest times for listings and sales – or better known as “selling season.” Thankfully, there was a surprise, silver lining. Historically, a lower demand for real estate sales would be accompanied by lower prices, but we didn’t see that with local spring home sales in 2020 due to the combination of low inventory of properties and super low mortgage
52 March 2021
