Spring is upon us and while these are unprecedented times, there is a silver lining in the real estate market. While stay-at-home orders are definitely affecting demand, this should only be short term.
With record lows in interest rates, I believe we will still have a strong year for residential real estate.
Likewise, if you are a buyer, this could be a good time to find a good price on a home with less competition.
Below is the latest update from Q1 of 2020 for national and Atlanta markets.
Median US home sale prices were up 4.5% in February, on a rolling 12-month basis. The median home price in February was $258,000. While growth has slowed compared to the same time last year, the continued growth is still positive for sellers.
The average number of days homes have been on the market in February increased by 6.8% from the same time last year. This is expected given the uncertainty in the market but also presents an opportunity for buyers by presenting a less competitive market.
Supply increased in February, up 3.4% on 3 months of supply on a rolling 12-month basis. I suspect that supply will continue to edge up as more potential buyers wait on the sidelines for the current situation to subside. Good buying opportunities could unfold nationwide.
Overall the economic uncertainty will keep many potential buyers on the sidelines. However, savvy buyers looking for a good deal could potentially find good opportunities as supply increases and homes stay on the market longer.
Additionally, current low mortgage rates can help savvy buyers. While mortgage rates have been on a rollercoaster during March, they seemed to have leveled at about 3.5% (30 year fixed) as of this writing on March 26th.
Atlanta continues to outpace national growth. Median Atlanta home sale prices were up 6.6% in August, on a rolling 12-month basis. The median home price in February was $302,495, well above the national median price. Comparatively, in February 2018, the median home price was $259,900.
The average number of days homes have been on the market in February increased by 25.5% from the same time last year. This is much higher than national averages, and I don’t believe this can all be attributed to a supply increase since that has subsided. It appears that buyers are waiting on the sidelines due to economic uncertainty.
Monthly supply did increase on a rolling 12-month basis and is up 27.6%. However, supply in February was at 3 months, approximately 9% lower than February 2019.
As soon as the economic uncertainty dissipates, I expect Atlanta to continue with a strong and healthy real estate market in the back half of 2020.
Are you interested in buying or selling your home this spring? If so, please do not hesitate to contact me.