VIBE Guide: What’s COVID-19 Doing to the Real Estate Market
by VIBE Realty
on Friday, April 17th, 2020 at 4:36pm.
Twin Cities Inventory Report Info To Fuel Your Real Estate Decisions
The market is changing, but not in all the ways you might think. Inventory remains very low, as do interest rates. Check out the reports below to get the latest scoop on today’s market.
Listings - How Many Are There?
Things are changing on a daily basis, which is why it’s important to stay up to speed on market inventory, and what’s happening in the listing world. The graph above shows the trend of listings since March, 1st. Just looking at the peaks throughout each week, you can see there has been an overall decline of homes to hit the market, especially when compared to 2019’s numbers. We will know more tomorrow when 4/17’s numbers are in, but it appears that this will be the first week where the peak listing day will be under 200 listings. For reference, these are very similar to January’s numbers when the real estate market is typically very slow in Minnesota.
Are They Selling?
The graph for Pending sales (sales under contract and scheduled to close) tells us a bit of a different story. While the overall inventory of listings are down, listings that are moving to pending are actually considerably higher. So what does this mean?
It means that the current supply of new homes hitting the market is not keeping up with the amount of people that are buying them. It was no secret that we already had a bit of a supply & demand issue with housing heading into the spring season. However, based on the numbers we are monitoring daily, it seems that COVID-19 is only creating more of an inventory problem than we had before.
How Does This Affect You?
If you own real estate and you were thinking about potentially selling, you may want to consider tapping into this basic supply & demand gap that we seem to be living in. If you are in the market to purchase, you are going to want to have conversations with your Realtor about how to best position yourself in this type of market.