June 2020 Real Estate Market Update

Saturday, July 4, 2020   /   by Jay Lesko

June 2020 Real Estate Market Update

I know what you are thinking; when will 2020 be over?  Who's ready for 2021?  If there is any saving grace for this year it's that our real estate market across Coastal Delaware and Maryland is hot!  We are seeing a high velocity of buyers entering the market.  As the modern real estate market experienced its first pandemic, many of us questioned how the housing market would fair during uncertainty.  Personally, I was concerned as well.  Uncertainty equates to instability, which results in panic.  Luckily, the residential real estate market has been the key to our economic recovery.

We are seeing a surge of buyers from highly populated areas like New York and New Jersey.  COVID-19 has come up in quite a few of our initial buyer consultations.  Add this to pent up demand when Delaware had a 14-day out of state quarantine requirement along with a short-term rental ban that deterred not only visitors to the state, but active buyers as well.  Then June 5th arrived and the state opened its doors and the surge of buyers appeared.  

The market has shifted drastically to a sellers market, but that doesn't necessarily mean that ever home in every community is moving.  Pricing remains a key variable and if a listing is overpriced, the process of substitution sets in; where buyers realize they can find a similar home for less. 

One of the most dynamic indicators is tracking the number of homes that went "Pending" in our MLS.  Below is a breakdown of the new pendings across the beach markets.  The number of homes that went under contract last month broke the 5-year average for all markets.  Once again, this is likely due to pent up demand that could not enter the market due to state restrictions during COVID-19.  Couple that with already low inventory (26.3% less than last year) along with a number of listings coming off the market due to COVID-19 due to sellers being concerned about the risk of transmission and you have the makings for a highly competitive market for buyers.  

We are here to assist you in whatever way we can.  Please don't hesitate to reach out to us for more market details or if you are interested in purchasing or selling a home here in Coastal Delaware and Maryland.