It’s time once again to check the numbers in this month’s Pioneer Valley Sales Report!
In this month’s report we’re seeing more clearly how the COVID-19 crisis is impacting the real estate market. March was skewed because many transactions occurred before the stay-at-home advisory took effect and before many people had to apply for unemployment. Since then, things have picked back up and I’m already really curious to see what May’s reports will show us. Personally, I am still busy with buyers especially and a few people who are seriously considering listing their homes. Feels in many ways like business-as-usual. Let’s start with some….
Major Takeaways for the Pioneer Valley
- Pioneer Valley single-family home sales were down 24% from April 2019 April 2020
- Median sales price was up 8.9% Year-Over-Year (YOY) from $224,000 to $243,920
- Inventory continues to decrease at -38.5% YOY
- Days on market dropped a drastic 29.4% from 85 to 60
- Mortgage rates: 30-year fixed-rate mortgages (FRMs) averaged 3.31% for the week ending 4/30/2020 versus 4.14% for April 2019.
So what does it all mean?
I frequently get asked if now is a good time to buy/sell. As far as the statistics go – yes. There are fewer transactions happening because many people either removed their homes from the market or decided not to list them because they were understandably feeling uncertain about the state of affairs. We were already at an inventory shortage and now those numbers are even lower. What does that mean for you as a seller? There are fewer homes that your home would be in competition with and you would be capturing those buyers who have “nothing” to look at. At the same time, home values continue to increase, even now. So for most homes you are still getting market value and you’re getting it quickly and you’re getting it from highly qualified buyers. How do we know they’re highly qualified?
Before we start showings we are making sure buyers have current preapprovals. Requirements have shifted and we all need to know before we even think about entering a home if the buyer is really serious about considering it. If someone is able to get preapproved these days, you can rest assured they have solid purchasing power.
Now, buyers. Many buyers decided to put their plans on hold while many others continue to need to move forward. Combined with the insanely low mortgage rates (insanely low!!), many renters have also decided now is the best possible time to be looking. There are also those buyers who desperately need to change their living circumstances as we look at prolonged needs for social distance. They have even less available to them to look at and when something does hit the market, it’s getting snatched up even faster, which is one factor that contributes to the decreased days on market (DOM).
Of the three counties, Hampshire’s single family sales decreased the least from April 2019 at -6.7% versus -28.3% and -28.2% for Franklin and Hampden Counties respectively.
Additionally, Hampshire County’s median sale price also increased the most drastically at 16.3% - up from $279,500 in April 2019 to $325,000 in 2020.
Below you’ll find some stats for all three counties. To read the whole report, head over here.