A Housing Analysis Before and After COVID-19
Where will the value of homes be after COVID-19?
The true direction of real estate values is currently unknown as we explore unchartered territories due to COVID-19. Agents, homeowners, and prospective buyers are speculating across the nation as to what direction sales and prices will head later this year. The housing market pre-COVID-19 was fundamentally strong as we began the new year. Rolling into what some coined the new roaring 20s was exciting for many as we entered the longest economic expansion in U.S. history.
Trends in the single-family housing inventory
The current decline in markets was not a result of a faulty housing market like the great financial crisis of 2007-2008. The current situation has been fueled by fear and incredibly high unemployment levels among other factors. A decrease in demand and an increase in supply may exacerbate the housing market’s adjustment. Existing home sales declined by 8.5% from February to March according to the National Association of Realtors. During the same period, home buyers with existing contracts in place began to cancel escrows as the COVID-19 panic set in. Single-family homes back on the market in Beverly Hills’ most exclusive zip code 90210 rose by 144% in April 2020 compared to February. The increase of homes placed back on the market accompanied by new sellers moving forward with activating their new listings has potentially caused a surplus of supply to be available in the 90210 housing market.
New listings appear to remain almost stable the Beverly Hills 90210 market; while buyers under contract canceled their escrows. New listings were only down 13% in April compared to February 2020. In April, sales plummeted approximately 82% in 90210 leaving unsold inventory to sit stagnate on the market.
Sellers and buyers should be aware that The MLS in Southern California has put a pause on accumulating days on the market (DOM). How long a listed property sits unsold on the market is an excellent indicator to sophisticated real estate agents and home buyers. Consumers considering making an offer today should pay close attention to the original listing date of the subject property.
Housing supply and housing demand in 90210
With some of the most desirable real estate in the world, Beverly Hills is a leader when it comes to property. Luxury market movers help us understand the direction of the overall housing market. Supply and demand are important in understanding the direction of how much your home will be worth after COVID-19.
The following supply and demand curves address single-family homes only in the Beverly Hills 90210 zip code. The 90210 zip code includes the Beverly Hills Post Office neighborhood. This data does not consider transactions completed outside of the multiple listing service. Contact Marc Anthony for an in-depth neighborhood study specific to your property that includes all sales in and out of the MLS.
A look from 30,000′ – Los Angeles County housing supply and demand
A supply and demand curve for all single-family homes in Los Angeles County offers another look into supply and demand before and after COVID-19. This data also only considers single-family dwellings recorded in the multiple listing service.
A new normal and the value of your home
As we continue to battle the coronavirus, stay healthy, and protect our most vulnerable; we will eventually recover from this terrible pandemic. Our recovery is inevitable, however, it’s still too early to tell what that recovery will look like. Will the recovery be V-shaped, L-shaped, or could it even be checkmark-shaped? As more data becomes available, trust Coldwell Banker Realty in Beverly Hills to help you navigate the new normal and the new value of your home.
For more specific information not discussed here contact Marc Anthony for a free custom no-obligation analysis of your local real estate market. Marc Anthony is a licensed real estate agent in the State of Ohio and the State of California.