What was looking like a very strong spring season for home sales got sidetracked by the coronavirus in March.
March was the fourth consecutive month with year-over-year increases in U.S. home sales according to the RE/MAX National Housing Report. But the spread of COVID-19, and the initiation of governmental measures to slow it, dampened the month’s overall sales results.
Sales growth from February to March averages 32% and is typically the largest month-to-month increase of the year. But this year, March sales climbed just 23.8% over February – the lowest such gain in the report’s nearly 12-year history.
“As expected, the strong market of January and February continued into March, setting up a very good first quarter. But then the coronavirus and the initial mitigation measures arrived, disrupting our industry along with everything else,” said Adam Contos, RE/MAX Holdings, Inc. CEO. “Conditions and restrictions vary throughout the country, so some areas continue to see new listings, pendings and closings, while other markets have slowed dramatically – especially where real estate was not deemed an essential service. It’s a fluid situation. We believe that interest in buying or selling remains high, and pent-up demand in many places should drive sales higher over time.”
A snapshot of March data for New York and Los Angeles in the RE/MAX National Housing Report highlights varying situations and market fluctuations in the first month of accelerating COVID-19 cases and mitigation measures. Home sales in the New York area decreased 39.2% year-over-year with a 33.8% drop from February to March 2020. Meanwhile, in Los Angeles, home sales increased 15.6% year-over-year with a more than 20% jump month-over-month.
Here are some highlights of the latest data found in the RE/MAX National Housing Report:
1. March saw continued year-over-year increases in U.S. home sales – a streak not seen since 2016
Of the 52 metro areas surveyed in March 2020, the overall average number of home sales was up 23.8% compared to February 2020, and up 2.7% compared to March 2019. Leading the year-over-year sales percentage increase were Los Angeles, CA at +15.6%, Boise, ID at +15.2%, and Las Vegas, NV at +12.2%.
2. Sales prices in March continued to climb
Seventeen metro areas increased year-over-year by double-digit percentages, with the largest sales price increases seen in Birmingham, AL at +19.8%, Cincinnati, OH at +14.3%, and Salt Lake City, UT at +14.1%. In March 2020, the median of all 52 metro Median Sales Prices was $265,000, up 2.9% from February 2020 and up 7.7% from March 2019. Only one metro area, Billings, MT at -0.4%, saw a year-over-year decrease in Median Sales Price.
3. On average, homes sold faster
The average Days on Market, the number of days between when a home is first listed in an MLS and a sales contract is signed, for homes sold in March 2020 was 54, down five days from the average in February 2020, and down five days from the average in March 2019. The metro areas with the lowest Days on Market were San Francisco, CA at 25, and a two-way tie between Seattle, WA and Omaha, NE at 30. The highest Days on Market averages were in Augusta, ME at 128, Des Moines, IA at 112, and Hartford, CT at 94.
“One takeaway that’s already clear is that real estate agents, using technology and adhering to social distancing guidelines, can lead consumers through the buying or selling process in a largely virtual way,” added Contos. “In many respects, the expertise of a skilled agent has never been more important.”
Whatever your local situation at the present time, a RE/MAX agent can provide help, information, guidance and expertise on all things related to real estate.
Written by Samantha Rotbart
