Claudia Saavedra: Despite virus, market is still active
The real estate transaction has looked a little different in recent months but the market is still very active. While the number of closed sales in April was lower than last month and last year, home prices have held strong. Buyers holding out for a market decline might be disappointed – pricing is expected to remain stable.
In the region served by Sierra Nevada Realtors, which includes Carson, Douglas, Lyon, and Churchill counties, the median sale price was $334,000 in April, which is just 2 percent lower than in March and is actually 6 percent higher than in April 2019.
In April, the average seller sold their home for 98.2% of listing price. This is 1% lower than in March and 1% lower than in April 2019. A high percentage of listing price received is an indicator of healthy demand and demonstrates market stability.
Active inventory has fallen substantially, likely because sellers are holding off on listing their homes until necessary safety measures are less stringent. There are currently some 580 homes for sale, which is 10% lower than in March and 26% lower than in April 2019. Declining inventory is an indication of a seller’s market.
Only 217 new listings hit the market in April, down 27% from March and 47 percent from April 2019. Less available inventory will likely find buyers in multiple-offer situations on a regular basis.
National Association of Realtors Chief Economist Lawrence Yun has indicated that he’s expecting that pricing will hold steady on a national level even though unit volume may drop.
In mid-March, the country and the real estate market were dealt an unprecedented hand. Now, we have more information available to us and we can see that we’re unlikely to face a significant decrease in housing prices. This is due in part to low interest rates combined with inventory contraction and is further bolstered by unwavering buyer demand.
Sierra Nevada Realtors will continue to keep the community updated – in the meantime, give your real estate agent a call for more information specific to you and your family. Remember, working with an agent is always a smart move.