According to recent statistics, I’ve conducted an analysis of how COVID-19 has impacted the Real Estate Market.
I’ve analyzed four key factors in four counties, comparing data of April 2020 to April 2019.
“Pending & Closed Listings”
“Median Days on Market”
“Orange County” (Blue)
“San Bernardino County” (Red)
“Los Angeles County” (Green)
“Riverside County” (Grey)
According to statistics, total active listings counted 48177 for April of 2020 and counted for 29886 for April of 2019. Due to the impact of COVID-19, total active listings compared to last year was dropped close to 40%. Many sellers are waiting in fear of the virus which caused housing supply to be low. Total active listings for each county has shown to be less compared to last April.
Pending & Closed Listings
As shown from above Figure A & Figure B, total of “Pending Listings” and “Closed Listings” of April 2020 is counted for 15494. Compared to April, 2020 of 28644 which had a decrease of 46 %. This shows the impact of COVID-10 that buyer’s confidence had been affected either due to financial or health concerns.
However, if we look at the ratio and percentage of “ Pending Listing and Closed Listings” and “Active Listings”, we see that the percentage between this and last year doesn’t really have much difference. It is only off by 7.62 %.
|April 2019 Total Transactions/ Active Listings Percentage||59.46%|
|April 2020 Total Transactions/ Active Listings Percentage||51.84%|
This indicates there are still quite a few buyers shopping for a home. However, we cannot tell from this whether the current market is a buyer’s market or seller’s market. The statistics provided analyzes a broader statement. In order to determine such, we will need to look into other factors in details as the statement will change based on other detailed factors.
For example, the location of the home and the price range of the home (detailed factors: type of home, size, condition and age). These two key factors will have different statements.
For a detailed report based on your criteria, Please don’t hesitate to reach out to me directly.
Median Sales Price
Looking at the data from four counties as average，there is a 1.92% increase compared to last year. You may wonder how come I heard the prices have dropped due to COVID-19?
As you may see in Figure C, Orange County’s Median Sales Price have dropped comparing to last year. But San Bernardino County, Riverside County and Los Angeles showed slight increased in Median Sales Price.
|April 2019 Median Sales Price||April 2020 Median Sales Price|
|OC County||$ 700,000||$ 685,000|
|SB County||$ 330,000||$ 340,945|
|LA County||$ 625,000||$ 650,000|
|Riverside County||$ 383,000||$ 405,000|
As mentioned, housing market has been impacted by COVID-19 but we cannot determine the impact as a whole but to look into details on factors such as location and price range.
Median Days on Market
You may be wondering why the Average Median DOM was decreased by 11 days? The reason is due to the data we are using is Median DOM and this will show analyze on a broader level. To determine the impact COVID-19 has made on different types of home and price rage, please reach out to me directly for a more detailed explanation based on your housing needs.
For instance, the DOM for houses priced $1,000,000 and up is averaged to be around 90 days. This tells us COVID-19 has made a bigger impact on these homes. Thus, buyers who are looking for homes in the price range will receive a greater discount during this time.
The data in reflection states that homes below $800,000 that are in good condition and priced right which resulted in lower DOM and caused multiple buyers to compete. These homes reflected to be Seller’s Market.
Many buyers are still actively looking during this special timing. Buyers who are in need of a home and who have not been affected by COVID-19 financially are still buying. As Summer is approaching, Summer is known to have the hottest buyer activities. Buyers who were supposed to purchase early this year have waited due to COVID-19. This resulted in buyers waiting for summer to purchase. More buyers are forced to postpone their timing to purchase and will definitely result in multiple buyers competing on the same home.
If you are looking to purchase a home over $1,000,000, right now is a good time to get at it. You will receive more discount than any other time. Other than that, the housing market is still fairly strong. COVID-19 has made an impact for sure in many different aspects but the impact isn’t as terrible as most people thought.
Original Content by Tiffany Huang