No question, COVID has had an affect, and has slowed the number of transactions we have. That being said, from April 2020 to May 2020 we've seen a 20.1% increase in new listings, and a 52.5% increase in pending sales. Wait, what? No wonder buyers are having such a hard time getting offers accepted. Yes, we are solidly back in the land of multiple offers, bidding wars and offers well above list price.
Add to that, a shortened market time, 38 days in May 2020, compared to 44 days in April 2020, and 61 days when compared with year to date stats from 2019.
Oh yes, and the median year to date price has gone up 4.1%, to $415,000, compared to the year to date price from 2019. For perspective, median price increased 2.5% in all of 2019.
Read the RMLS report.
A few updates on lending: Interest rates remain quite low. Jumbo loans, often needed on higher priced properties, do still exist. As you might imagine, due to the rapid onset off COVID restrictions and job losses, lenders are a bit spooked. We're seeing multiple employment verifications on active loan files (sometimes asking about the borrowers prospects of future employment), and self-employed borrowers are often required to provide audited profit and loss statements.
Forbearance, what originally might have looked like a generous offer from lenders on existing loans, has played out a bit differently. Most lenders offered to suspend payments for three months, with the balance of those missed payments due at the end of the three months. Not such a help afterall. And, anyone with a loan in forebearance, will have trouble getting a new loan. So...perhaps one might re-finance to take advantage of lower rates and lower one's house payment - a financially responsible thing to do. But wait, if you're current loan is in forbearance, you may not be eligible to do so. If you even called to inquire about forbearance, but didn't sign any papers or complete any process, your loan may have been put in forbearance without you even knowing it. You might should check.
Similarly, many student loans were automatically put in forbearance, without the borrower even inquiring. If so, your payments may not be applied to what would be the current payments. If you have student loans, log on and check to be are all looks as it should.
This is very clearly, a great time to sell. If you are thinking of doing so, get in touch. Its a bit more challenging to be a buyer these days, though I do have some tried and true methods that get offers accepted.
Because of COVID, we are using distancing and other protocols. Masks, booties, gloves, and hand washing stations all help keep us safe. I have these supplies on hand.
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