Hope you are staying healthy and safe, and enjoying the longer daylight hours, spring flowers, fresh air and all those good things.
(Bonus Question: Name that tune: “When it’s cold outside….. I got the month of May!”)
Let’s take a quick dive in to the real estate numbers in the city of Long Beach from the last 30 days, in April 2020:
Number of residential properties on the market (active listings): On Sunday May 3 as I’m writing this: 438 active listings, up from a month ago on April 1 which had 381 active homes for sale. Inventory is increasing, reflecting two things: (1) more homes coming on the market as sellers feel some confidence that there are buyers in the market looking for homes like theirs, and (2) fewer homes going under contract, therefore more homes staying on the market longer.
Number of residential properties that went under contract in April: 146 vs 196 in March 2020 and 251 in February 2020 – fewer homes went under contract in April vs March vs February. We are seeing a downward trend for new pending sales. An average of 5 homes a day went under contract in April 2020.
Data from last year, April 2019, showed that 302 properties were pending sales. With that figure, we can see we are at approximately 50% the number of pending sales this year vs last year in the month of April.
Number of residential properties that closed in April: 219 homes closed vs 229 vs 228 in February – that number is stable. We had solid numbers of homes closing escrow and transferring ownership the last 3 months, an average of 7 per day.
Data from last year, April 2019, showed that 248 homes closed escrow, so our closings dropped only 12% year on year, while pending sales, a leading indicator of closings, dropped more.
Average price of property sold in Long Beach in April 2020: $661,264 which is down slightly from last month’s average sales price in the $680,000s, and up from last April’s $605,725 average sales price.
Overall, the real estate market in April was down in volume, as expected, due to our current Covid-19 pandemic environment and stay-at-home orders, with the number new pending sales declining 26% from the previous month, and down 52% from last April (2019).
Even so, the real estate market during the Covid-19 era is not completely at a standstill, and has declined less than many believe. In the month of April, we did see 146 homes receive offers from buyers that were accepted by sellers at a rate of approximately 5 per day.
How are homes being sold in today’s environment?
One of my most frequently asked questions these days is: How are homes being sold in today’s Covid-19 environment?
As my team and I have closed 5 home sales in the past 45 days, all during the Covid-19 time, we are in a uniquely qualified position to help homeowners and home buyers navigate the hurdles that exist in the new era of selling and buying homes.
I’m going to be addressing the answer to this question on a Video that I will put on YouTube and I will send you a link for this soon when I have it!
In the meantime, let me summarize my answer for you:
- There are currently no open houses, so all showings are by appointment only and spaced out between viewers.
- Homes are being shown virtually online with improved marketing, 3D tours, virtual tours and videos.
- Homes are being shown in person with precautions, screening questions, and new safety protocols.
- Protocols include (a) screening for illness and travel, (b) buyers entering with masks and gloves, (c) buyers instructed not to touch anything in the homes, (d) sellers instructed to sanitize all surfaces after showings
- Vacant homes are selling at a higher rate due to ease of showing
- The selling process, once under contract, involves more careful and safe procedures with regards to home inspections, appraisals, and all signing of paperwork.
#5 above is particularly important. If you own a property that is currently vacant, please let me know if I can perform a free market analysis for you to show you what it can sell for in today’s market.
Thank you so much for reading. Now share with me – what are your goals for May?