In comparing the Real Estate statistics from April, 2020 to the same time last year, you can clearly see the average median sold price was 16% higher. That is wonderful. However, the question is: How much does the low inventory of homes for sale play into the sharp increase?
Last month, we had more closings than a year ago. However, the 340 new listings that hit the market last month was a 40% drop from a year ago! If you feel like homes are disappearing quickly, you are right! The average time a home stays on the market before a contract is 34 days – less than a year ago. If a house is priced right and looks good, it will sell faster. Just last week, I spoke with an agent who received multiple offers on a Harford County townhome that was on the market for just 3 days.
It will be very interesting to see what happens this month.
The flip side of this coin is that, according to a survey of potential home sellers (not Maryland specific), 77% said they were waiting until the quarantine order is lifted to sell their home. How many of those really will be listing? And, if they do, will they all list at the same time? If so, the inventory could definitely swing toward the benefit of buyers – too many homes available would cause prices to fall – how much of a drop would be anyone’s guess.
In all cases, information is key. You need to know what situation you may be facing to help you make a plan. If you want to know what your home is worth, reach out by email or give me a call. I will prepare a market report for your property and help you plan for the future.