In today’s market update, I discuss both the year-over-year changes we’ve seen in the market and discuss some of the impacts the coronavirus has had on the market.
In light of the recent outbreak of the coronavirus, I’ll first discuss our specific market numbers and then address how the virus has impacted the market as a whole.
First, the numbers:
- Inventory: There are currently 2,429 homes for sale in El Dorado County, whereas last year, there were 3,397 homes for sale. That means there’s much less competition this year. There are 1.7 months of available inventory, compared to 2.2 months this time last year.
- Pending sales: Pendings increased to 2,120 over last year’s 1,834. We’ve seen properties getting boosted up by $10,000 to $20,000 over list price,
- Price per square foot: Homes are selling for $246 per square foot, where last year, they sold for $234.
- List-to-sales-price ratio: Homes are currently selling at about 98% of their list price, which is an increase over last year’s 97%.
- Days on market: Homes currently take 45 days on average to sell, where last year, they took 56 days to sell.
Average list/sales prices: The average list price is $665,000, and the average sold price is $470,000, which tells us that more upper-priced homes are being listed and more mid-priced homes are selling.
Now, onto the big news: the coronavirus.
Keep in mind that uncertainty, whether it be in the stock market or real estate, does have an impact. Some people are waiting to put their homes on the market or to make a purchase.
If the coronavirus is less severe than we believe and it goes away in a couple of weeks, then it won’t have a huge impact on the market. But if it gets more severe, it may affect real estate and other markets.
Now, there is one way that the virus is definitely impacting the market: interest rates have dropped by 1% over last year, leaving us below 3% in some areas. That means that buyer affordability has increased. For example, if you could buy a $400,000 home last year, you could buy a $460,000 home this year.
Of course, consumer confidence drives all markets. The bottom line is that the market is still very strong. If you’re a seller, now is a great time to list because there’s less competition from other homeowners. If you’re a buyer, interest rates are very low right now, making it a good time to make a purchase.
If you have any more questions about the market or the coronavirus’s potential impact, don’t hesitate to reach out to me. I’d love to discuss this with you further.