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How has COVID-19 impacted our market?
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Joe answers questions he received from clients. Feel free to submit your own question.
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Well.. getting right down to it on this question. It’s impacted in several ways and probably more than anybody has realized as it tweaks all different kinds of concepts. As we mentioned in Holmes on Homes, it’s created less inventory. It’s not as if selling your home during a global pandemic is going to increase our inventory, so naturally the listing inventory is a bit lower. Other factors to consider – Covid has created a massive increase in home projects & remodeling with all this attention to staying home. Add that into a shortage in lumber and an already hot new construction market and you get lumber prices that are out of control. Lumber has increased 30-40% in pricing in the last 6 months alone! Covid’s fingerprints are on a lot of concepts that have impacted our market.
How’s the market – seriously can you still sell a home overnight? Ok Ok.. homes can sell quickly but it doesn’t mean that they do and it doesn’t mean you should lose your marbles if your home hasn’t sold in a week, month or even a year. Yeah.. even a year! First of all .. there are literally 100’s of markets within the Twin Cities market. So not all things are created equal. Condos in St. Paul.. Single Family homes in Plymouth… Townhome in Woodbury… and to blow the consistency right out the water, price ranges very greatly too. You have to look into the supply/demand ratios of YOUR market – geography, style, price. From there you can determine how to price. If you price high or low within that platform, you can then gauge an expected “time on market” to find a buyer.
