This week as we analyze the data, we are seeing all three of the metric categories make a noticeable decline. This was certainly anticipated as we rounded the corner into another week of the statewide stay-at-home-order. Although new listings have been slowly declining year-over-year, during Week 13 we saw a fairly significant drop. New listings were down 710 units, a 29% decrease compared to the same time last year. Pending sales also dropped by 664 units last week: a 36% decrease compared to sales the same time last year. Closed sales dropped from 1713 closed units in 2019 to 1292 closed units in 2020, a 25% decrease. I attribute a large percentage of this decline to the temporary job layoff’s which prohibited home buyers from receiving final loan approvals as they no longer had the income required to qualify for the very loan they were pre-approved for just weeks prior. A small percentage of fear-driven voluntary terminations did occur last week due to all of the uncertainly.
Keep in mind that during this very same week, we also saw a 12% decrease in closed sales from 2018 to 2019. At this time of year, a decrease in sales is common due to lack of inventory, however, I do strongly believe that the dips in closed sales in the coming weeks won’t be due to seasonality, but instead, will be directly related to Covid-19.
We will continue to watch the numbers week by week and will deliver timely and relevant data. This will help you see how buyers and sellers are behaving in real time, allowing us to predict how the market will likely preform over the weeks ahead.
This next graph is very telling for Sellers, reflecting the dramatic drop in showings since the virus became front page news.