COVID 19 and the Real Estate Market
August 31, 2020
The Lee Goldstein Group, TTR Sotheby’s International Realty
Having been in a global pandemic for most of 2020 would lead most to believe that all aspects of the economy are in worse shape than during the same timeframe in 2019. However, this is not the case in our local real estate market. The strength of the market that began pre-Covid-19 has extended and even increased in its strength over the past several months.
Homes are generally on the market for shorter periods of time than during 2019 and many properties are selling with multiple offers and over list price. Of course, there are multiple factors that affect this statistic, including neighborhood, price point, and type of property (condo, townhouse, detached home, etc.), but all types of properties across the board are seeing extremely strong sales.
In reviewing local home sale statistics, during the week of August 9 – 15, the total number of homes that went under contract in Washington DC were 230, compared to 144 during the same week of 2019. In Montgomery County, the sales during this same week of 2020 were 340 versus 244 in 2019. Also, in Montgomery, the number of homes that went under contract over $1M during this week rose from 19 in 2019 to 31 in 2020. As this shows, our current market is moving briskly.
As far as how long properties are remaining on the market, during the month of July 2019, the median number of days that a home was on the market in Montgomery County was 14, compared with only 8 days on the market during July of 2020. In the District of Columbia, the days on market also went down slightly in July 2020, to 9 versus 10 in 2019.
All of this to say that we are currently in a surprisingly strong market. Interest rates continue to hover at all-time lows of under 3%, and surprisingly, consumer confidence in many areas remains strong relative to the real estate market.
It is also important to note, that a key factor in the market remaining strong is the way in which Realtors, home buyers, home sellers, inspectors, title companies, lenders, etc., have adjusted the ways in which real estate transactions are conducted to be safe during these times. Virtual showings became popular in the early days of Covid-19, with masks and social distancing having become common place during all showings and inspections.
If you are considering a move and would like to know exactly how much your home is worth in today’s market, please reach out to us for a detailed analysis of your home and its value. We can also discuss options for your next home and provide proven strategies to make your sale and purchase as profitable and seamless as possible.
The Lee Goldstein Group
TTR Sotheby’s International Realty
Learn more about our services today