This week’s Q&A column is written by David Howell, Executive Vice President and Chief Information Officer, of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant market news, contact David at 703-738-9513 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: Has COVID-19 crashed the real estate market?
Answer: We’re now more than two months into the region’s — and the nation’s — efforts to cope with the COVID-19 pandemic and everyone, in every walk of life, has been impacted in some way. The real estate market is no exception. We believe that an important part of what we do at McEnearney Associates is to provide accurate, timely information to our clients so they can make informed decisions, and we want to offer a candid view of some of the myths about the state of the market.
Buyers & sellers are sitting on the sidelines and the real estate market has crashed.
More serious buyers and sellers have returned to the market since the previous month, and they are making decisions rapidly when they see value. Since mid-March, the average number of days that homes going under contract were on the market was 22 days. In the same time period last year, it was 27 days.
Home prices are coming down.
There is absolutely no indication of falling home prices. Homes that went under contract last year between mid-March and mid-May sold on average for 99.6% of their original list price. This year it is exactly the same. Based on what we have seen so far, the pace of price appreciation may be slowing, but prices are not coming down.
Mortgage financing is much more challenging.
Buyers with stable employment and the confidence to purchase are able to do so with no more difficulty than last year, and because of the low rates, their money goes further. Yet it is also true that those individuals who have been furloughed aren’t looking to get a mortgage, and if they were, it would be really tough to qualify.
For more in-depth, local analysis of our real estate market, please visit McEnearney.com/3Myths.
f you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria