Fear is spawned by Corona Virus Disease 2019 (Covid-19) since it gained traction in the media last month. As days went by, supplies of masks, hand sanitizers and disinfectant wipes in the groceries and drugstores quickly disappeared from the shelves. Online stores were out of stock too of these popular items.
While demand for these items skyrocket, other supplies in the market see lackluster. Home sales is also down. In Manchester CT, properties that went under contract in the month of February, the month wherein the outbreak of the novel virus became prominent, is down by 26 percent. It is not a scary ratio to trigger panic in the real estate industry. But it is enough to precipitate concern as to how far this pandemic would gravely affect the real estate.
SUMMARY OF MANCHESTER CT REAL ESTATE FOR MARCH 2020
Single Family Homes for Sale as of March 11, 2020
- Units for Sale: 75. Last Month: 77
- Average List Price is $242,263 with 3 bedrooms, 2 bathrooms and average square feet of 1,789
- Median List Price is $233,500 with 3 bedrooms, 2 bathrooms and median square feet of 1,664
- Most Expensive Home is $579,900 with 3 bedrooms, 2 and 1/2 bathrooms and 2,400 square feet of living space
- Least Expensive Home is $62,900 with 3 bedrooms, 1 full bathroom and 1,152 square feet of living space
Single Family Homes Under Contract for the month of February 2020
- Units under Contract: 47. Last Month: 64
- Average List Price is $196,270 with 3 bedrooms, 2 bathrooms and average square feet of 1,629
- Median List Price is $184,900 with 3 bedrooms, 2 bathrooms and median square feet of 1,484
- Most Expensive Home is $339,900 with 4 bedrooms, 3 and 1/2 bathrooms and 2,980 square feet of living space
- Least Expensive Home is $119,900 with 2 bedrooms, 1 bathroom and 768 square feet of living space
Sold Single Family Homes in February 2020
- Units Sold: 39. Last Month: 26
- Average Sale Price is $199,452 with 3 bedrooms, 2 bathrooms and average square feet of 1,608
- Median Sale Price is $184,900 with 3 bedrooms, 2 bathrooms and median square feet of 1,491
- Most Expensive Sold Home is a bank-owned home at $370,000 with 5 bedrooms, 3 and 1/2 bathrooms and 3,182 square feet of living space
- Least Expensive Sold Home is $80,000 with 4 bedrooms, 2 full bathrooms and 1,760 square feet of living space.
Significance of the Current Inventory and Absorption Rate
Manchester CT Sold Homes from March 1, 2019 to February 29, 2020 converted into an absorption rate give us an approximate length or period of time when the current inventory of 75 units would be depleted. Five Hundred Eighty Six (586) single family homes were sold within a period of one year.
Given the absorption rate of 48 units sold in a month, the Town of Manchester, currently, has 1 to 2 months of inventory supply. This is an emaciated supply of properties. With this inventory, unless demand is curtailed, home prices might increase tremendously.
Absorption Rate: “The rate at which available homes are sold in a specific real estate market during a given time period.” Click on the link for a better explanation of Absorption Rate.
Understanding Mean(numerical Average) and Median:
“The median takes into consideration the middle value of the set of data. However the mean/average takes into consideration all of the values. Therefore high or low values will effect the mean/average. If the mean/average is a lot higher than the median, there is an unusually high value that pulls the average price up. If the mean is a lot lower than the median, there is an unusually low value that pulls the average price down.
In most cases, the reason the median price is used rather than the mean is mainly because it is a more accurate indicator of the market.
Planning to buy or sell properties in Manchester Connecticut ? Make sure to have the best representation. Contact Maria Gilda Racelis of Home Buyers Realty at 860.995.9473. Visit her website www.hbrsales.com