Market Watch Report 2nd QTR 2020

Single Family Homes Statistics

At the end of the 2nd QTR 2020, there are 517 Single-Family Homes pending.  This is a decrease of 4.8% from the 2nd QTR in 2019 when there were 543 listings pending.

During the 2nd QTR 2020, 555 Single-Family Home new listings came on the market.  This was a decrease of 19.6% from the 2nd QTR in 2019 when there were 690 new listings.

At the end of the 2nd QTR 2020, the number of Single-Family Homes for Sale is 332 properties.  This was a 36% decrease from the 2nd QTR in 2019 when there were 519 homes available for sale.

The chart shows stats on the supply of homes for a 3 year period in Davidson County for the cities of Lexington, Thomasville, and Denton.

This chart displays Days on Market for a 3 year period in Davidson County for the cities of Lexington, Thomasville, and Denton.

During the 2nd QTR 2020, 514 Single-Family homes closed, which is a decease of 1.2% from the same time period in 2019.  Sellers are receiving 97.6% of their list price.

Median Sales Price for Single-Family homes in the 2nd QTR 2020 is $178,000 which is an increase of 5.6% from the same time period in 2019.

Analysis of the absorption rates indicates an inventory of 2 months for Single-Family homes.  Most properties are going under contract within 52 days.

As you can see in the chart below, the Median Sale Price and Average Sale Price in Davidson County has been steadily increasing since 2015.  At the end of the 2nd QTR 2020, the Median Sales Price was $ 179,900 and the Average Sale price is $209,058. 

Townhome Statistics

At the end of the 2nd QTR 2020, there are 30 Townhome Listings pending.  This is a 30.2% decrease from the 2nd QTR in 2019 when there were 43 townhomes pending.

During the 2nd QTR 2020, 36 New Townhome Listings came on the market.  This was a 12.2% decrease from the 2nd QTR in 2019 when there were 41 new listings.

At the end of the 2nd QTR  2020, inventory is 28 Townhomes for sale, which is an increase of 3.7% from the 2nd QTR in 2019 QTR when there were 27.

During the 2nd QTR 2020, 46 Townhome Listings closed, which is an increase of 9.5% from the 2nd QTR in 2019 when 42 townhomes closed.   Sellers are receiving 99.8% of their list price.

Median Sales Price for Townhomes in the 2nd QTR 2020 is $215,867, which is an 24.2% increase from the same time period last year.

Analysis of the absorption rates indicates an inventory of 2.3 months for Townhome Listings.  Most properties are going under contract within 49 days.

• If you are secure in your employment and have your finances in order, now is a great time to buy because of the low financing costs available.
• Inventory levels will still be challenging for buyers in all price ranges but particularly for homes under 200K.  There will continue to be multiple offer situations in 2020.
• Another benefit to lower mortgage interest rates is the affordability factor.  The lower the rate, the more home you can afford to purchase.

Tips for Buyers in a Seller’s Market

• Preparation is key to compete against other home buyers in a seller’s market.  Your first step should be to get a preapproval letter from a lender even before you start shopping.
• To succeed in a seller’s market you need to make buying a home your number one priority.  You need to be on call as soon as a home comes on the market.  In some cases, homes are going under contract the first day they are listed.
• Write as clean a contract for the seller as possible without a lot of contingencies.

• There is less competition now in the market place with the low inventory levels.
• Talk to your agent about the new environment and procedures for showing your home and accepting offers.
• Buying and selling a home is a complicated transaction, and worrying about two real estate transactions at one time can be a daunting task.  Over the past two years, many sellers purchased their next property before they put their present home on the market.

You might also like:

1st QTR 2019 Market Watch Report

2nd QTR 2019 Market Watch Report

3rd QTR 2019 Market Watch Report

4th QTR 2019 Market Watch Report

1st QTR 2020 Market Watch Report

U.S. Housing Market

Real Estate activity continued to strengthen in June as much of the country was working on a phased reopening.  Buyer demand is strong, particularly with the millennial buyers wanting to enter the market.  However, Seller activity is soft, with fewer homes listed than last year.  This factor will cause housing inventory to continue to be very tight in all price ranges.

Individual real estate markets across the country will be affected differently because of COVID19.  States that have had a hard time with the virus and reopening will have a harder time with their real estate market coming back.

As reported by NAR, pending home sales continued to rise in June increasing 16.6% monthly since May, and increasing 6.3% since June 2019.  Inventory (existing homes for sale) fell 18% annually in June to just 1.57 million properties, which represents about a 4-month supply.  Presently, the bulk of the U.S. housing markets are in a seller’s market.

Davidson County NC Stats

New listings decreased 19.6% in the 2^nd QTR 2020 in Davidson County from the previous year.  Pending Sales also dropped by 4.8%.  Closed Sales decreased by 1.2%.  However, the Median Sales Price and Average Sales Price rose 5.6% and 4.9%.  Sellers are receiving 97.6% of List Price.  Inventory levels of Homes for Sale decreased 36% from 2019 levels.  Home buyers wanting to enter the market will continue to be challenged by the low inventory levels.

Financing a Home in 2020

In the beginning of June 2020, the average rate on a 30-year fixed mortgage was about 3.24%.  Rates continued to drop and at the end of the month were around 2.95%.  Realtors expect rates to stay in the 3% range for at least the next year and maybe longer.