How is our market doing amid the COVID-19 pandemic?
Now that we’re in the first part of summer 2020, we can all look back and say it’s already been quite a year. Obviously, there has been the issue of COVID-19 shutting down the country (and the world) for a while, but our real estate market has been humming along. Most people are still buying and selling homes, so our market wasn’t really affected all that much.
Single-family homes between $300,000 and $500,000 are still selling very quickly, but one thing that has changed in the Twin Cities market is that lower-end properties are selling slower than normal—especially townhomes.
Our absorption rate, or how quickly homes come on and off the market, is currently under two months. Given that six months is a balanced market, we’re in a pretty extreme seller’s market.
This past week, we had scheduled six showings for an out-of-state buyer, but by the time they got into town, there were only two properties left—everything else had sold.
We’re even seeing some multiple-offer situations, which raises the question of why some properties sell in a day and some don’t. As always in real estate, location is a big factor in a home’s sale. Condition and price matter too of course, and usually, a good-looking home with a competitive price can overcome other unchangeable issues the home has, like its location.
If you have any questions about the market and how it affects your situation, don’t hesitate to give us a call or shoot us an email. We’d be glad to help you.