The February 2020 housing stats for Maryland are in, and are looking really strong! There is no denying, we were (and still are at this point) in a seller's market. When the inventory levels (that is the months of active supply) drop well below 3, we consider it to be a market that clearly favors sellers, and brings with it busy days of showings, (very) few days on the market, multiple offer situations, and even escalation clauses.
As you can see in the chart, the months of supply decreased to just 1.9 - and that is all of Maryland. Some areas/subdivisions have little to no active inventory! Compared to February 2019 the number of sales increased by almost 100 to 5,112, and the average sales price increased by almost 22K to $339,155.
What's next? There's no doubt that Covid-19 will have an impact on the housing market. How much of an impact, or for how long, depends on many factors: how well do we handle social distancing? How successful will we be in flattening the curve? What measures are being implemented to counteract/balance the market and developments? ... and so much more. Time will tell. Right now, Real Estate is still happening. Homes are being listed and sold. We are making adjustments to the way homes are being shown, but we are still showing them!
The Federal Reserve has cut rates, and has announced emergency measures. The housing market overall is much different than back in 2007/2008. As Lawrence Yun, the chief economist at the National Association of REALTORS points out:
"During the last recession, real estate was on wobbly ground with loose lending and too much supply. Today, there is no subprime lending and too little supply. The real estate market will hold on much better."
I certainly believe so, too! While some homebuyers may be putting their search on hold, others will need to relocate, or downsize, or establish a multi-gen household and/or take advantage of low(er) interest rates. While some industries may (temporarily, I hope) see their revenues decline, others will be thriving in this environment.
Maryland is a solid market with government jobs, large corporations, the tech industry, and a vibrant small business community (please make an extra effort in supporting your favorite local small businesses!!) - but all Real Estate is local. Contact me for a detailed look at your current subdivision, or one you are interested in, or for advice on how to prep your home for the market, or how to get started buying you first, or next home, or .... anything else!
Instead of meeting for a cup of coffee, as I would normally do, we can schedule a virtual Happy Hour and discuss your plans from screen to screen :)