Clark County Housing Market Update
(You won’t read THIS in the paper)
April, 2020
HIGHLIGHTS
1) Covid-19 vs Real Estate Recovery Already?
2) Reusing vegetables: Toss or regrow?
……………………………………………………………….
REPORT
Buyer Activity:
Covid-19 is hitting hard on many jobs in the County. Real Estate is no exception. We are seeing a huge effect on buyer activity levels. After a very strong start in 2020 in January and February, conditions for real estate changed quickly. For 5 continuous weeks we saw declines in buyer activity totalling over 83%. During one of those weeks it was actually illegal to show a home but that ban has since passed. After 5 weeks of declines in buyer activity, conditions again reversed.
For 3 weeks ending April 26 we saw a rise in buyer activity totalling 50% according to the RMLS report out just today, the 26th. Furthermore, 29% of the 50% increase occurred this past week suggesting the momentum will continue. (See my conclusion below.)
Inventory Levels:
Inventory levels from January to February moved from 2.4 to 2.1 suggesting a stronger seller’s market. In March, our most recent reading, the number remained steady at 2.1. This might seem unexpected since buyer activity slowed so much but keep in mind the inventory numbers are based on the sold stats. Sold stats reflect buyer activity (buyers writing offers) from the second half of January and February.
Pending transactions in March were surprisingly higher than February. Pendings were higher but the rate of growth was just beginning to slow in March, down 22%. I strongly suspect we will see a major drop in pending activity next month. When we see buyer activity drop over 80% as it did in 5 weeks, we are going to see pendings drop followed 1-2 months later by a drop in solds. (For the good news, please read the conclusion.)
Listing Count:
Normally we do not see significant increases in listings until April. This year the number of listings in March increased over 10 times the March numbers of 2018 and almost 4 times the number of listings in 2019 during the same period. Perhaps this was a reaction to Covid-19? Who knows but it happened. Perhaps it was this unusual surge in listings that allowed buyers to find more suitable homes…. As if the lack in inventory was holding back anxious buyers. That is not an unreasonable situation when the market is as strong as it has been.
Pending Sales:
Pending sales from January to February rose from 672 to 718 (6.8%). Yes, January and February were good months and March was a better month than expected. That is good news. We did experience a “flattening of the curve” for pending sales, likely the result of the nearly 40% drop in buyer activity occurring the last week in March. So it is a bit surprising that pendings were as strong as they were- further verification buyer demand is still high.
Price Reductions:
Price reductions have been on a steady decline the past few months. But the last 45 days we have seen that trend reverse. Listings that have been reduced in price jumped from 162 in February to 736. That is a large jump up and indicative of the changing market.
The Average Price:
The average price of a home in Clark County rose over 7% (almost $10,000) to just over $426,000. Based on the price reductions the last 45 days, we will likely see this figure fall a bit with the next reporting.
Marketing time:
Market time fell again to 63 days days. I suspect we will see this figure rise next month.
Conclusion: These past 3 weeks buyer activity levels have bounced back to the halfway mark of early March highs after sinking to near historic lows. It is reasonable to expect more gains next week.
Showing homes is still somewhat challenging. State rules require only two folks in a home at a time and one must be an agent. So if the buyers have 3 in their party, it takes three trips through the home. And once finished and discussions ensue, there can easily be more refresher trips into the home. While time consuming, thank goodness we can still show homes.
Showing homes is also hard on the occupants. State law now requires they be totally gone. While this is normal, what is not normal is that there are few places for the seller or tenant to go. Parks and restaurants are closed. Often sellers simply sit in the car. That sounds pretty horrible to me.
The market does not feel as dead as it might sound here. Yesterday I saw an Amboy property that I discovered for a buyer, go pending in just two days. It was priced at $430,000. My listings are getting satisfactory showings and that is steadily improving.
I know the Covid-19 situation still has a ways to go for full recovery but from just the real estate perspective, it feels like we are past the worst. I am fully aware this is a bold statement to make. Scientists are saying we may be fighting Covid-19 for months to come. But we have growing listings and growing buyer demand even during these trying times. It may be possible it can only get better from here.
Food Trivia: Easy Starts in Your Own Kitchen
The endless loop: You run to your favorite market for veggies such as lettuce, kale, onions, celery and perhaps even bok choi. You use it all up and then return to the store so you can restock the frig the next week. Does this feel like a treadmill? Did you ever feel like breaking the endless cycle in at least some small way?
(Missing photo-sorry)
Instead of throwing the tails of those veggies in the trash or compost (bravo), consider getting double duty from them. After you have used the veggie, place 1-2 inches of the base or stub in a bowl with water about ½ inch deep. In a week there should be visible growth. Roots will eventually form. Then plant in soil or planting medium. There, you now have one less item to get at the store in 6-8 weeks and you will know that no pesticides were used. (Have you googled “Dirty Dozen” to see what is on the updated list of foods likely to have residual pesticides?)
Clark County Housing Market Update
(You won’t read THIS in the paper)
April, 2020
HIGHLIGHTS
1) Covid-19 vs Real Estate Recovery Already?
2) Reusing vegetables: Toss or regrow?
……………………………………………………………….
REPORT
Buyer Activity:
Covid-19 is hitting hard on many jobs in the County. Real Estate is no exception. We are seeing a huge effect on buyer activity levels. After a very strong start in 2020 in January and February, conditions for real estate changed quickly. For 5 continuous weeks we saw declines in buyer activity totalling over 83%. During one of those weeks it was actually illegal to show a home but that ban has since passed. After 5 weeks of declines in buyer activity, conditions again reversed.
For 3 weeks ending April 26 we saw a rise in buyer activity totalling 50% according to the RMLS report out just today, the 26th. Furthermore, 29% of the 50% increase occurred this past week suggesting the momentum will continue. (See my conclusion below.)
Inventory Levels:
Inventory levels from January to February moved from 2.4 to 2.1 suggesting a stronger seller’s market. In March, our most recent reading, the number remained steady at 2.1. This might seem unexpected since buyer activity slowed so much but keep in mind the inventory numbers are based on the sold stats. Sold stats reflect buyer activity (buyers writing offers) from the second half of January and February.
Pending transactions in March were surprisingly higher than February. Pendings were higher but the rate of growth was just beginning to slow in March, down 22%. I strongly suspect we will see a major drop in pending activity next month. When we see buyer activity drop over 80% as it did in 5 weeks, we are going to see pendings drop followed 1-2 months later by a drop in solds. (For the good news, please read the conclusion.)
Listing Count:
Normally we do not see significant increases in listings until April. This year the number of listings in March increased over 10 times the March numbers of 2018 and almost 4 times the number of listings in 2019 during the same period. Perhaps this was a reaction to Covid-19? Who knows but it happened. Perhaps it was this unusual surge in listings that allowed buyers to find more suitable homes…. As if the lack in inventory was holding back anxious buyers. That is not an unreasonable situation when the market is as strong as it has been.
Pending Sales:
Pending sales from January to February rose from 672 to 718 (6.8%). Yes, January and February were good months and March was a better month than expected. That is good news. We did experience a “flattening of the curve” for pending sales, likely the result of the nearly 40% drop in buyer activity occurring the last week in March. So it is a bit surprising that pendings were as strong as they were- further verification buyer demand is still high.
Price Reductions:
Price reductions have been on a steady decline the past few months. But the last 45 days we have seen that trend reverse. Listings that have been reduced in price jumped from 162 in February to 736. That is a large jump up and indicative of the changing market.
The Average Price:
The average price of a home in Clark County rose over 7% (almost $10,000) to just over $426,000. Based on the price reductions the last 45 days, we will likely see this figure fall a bit with the next reporting.
Marketing time:
Market time fell again to 63 days days. I suspect we will see this figure rise next month.
Conclusion: These past 3 weeks buyer activity levels have bounced back to the halfway mark of early March highs after sinking to near historic lows. It is reasonable to expect more gains next week.
Showing homes is still somewhat challenging. State rules require only two folks in a home at a time and one must be an agent. So if the buyers have 3 in their party, it takes three trips through the home. And once finished and discussions ensue, there can easily be more refresher trips into the home. While time consuming, thank goodness we can still show homes.
Showing homes is also hard on the occupants. State law now requires they be totally gone. While this is normal, what is not normal is that there are few places for the seller or tenant to go. Parks and restaurants are closed. Often sellers simply sit in the car. That sounds pretty horrible to me.
The market does not feel as dead as it might sound here. Yesterday I saw an Amboy property that I discovered for a buyer, go pending in just two days. It was priced at $430,000. My listings are getting satisfactory showings and that is steadily improving.
I know the Covid-19 situation still has a ways to go for full recovery but from just the real estate perspective, it feels like we are past the worst. I am fully aware this is a bold statement to make. Scientists are saying we may be fighting Covid-19 for months to come. But we have growing listings and growing buyer demand even during these trying times. It may be possible it can only get better from here.
Food Trivia: Easy Starts in Your Own Kitchen
The endless loop: You run to your favorite market for veggies such as lettuce, kale, onions, celery and perhaps even bok choi. You use it all up and then return to the store so you can restock the frig the next week. Does this feel like a treadmill? Did you ever feel like breaking the endless cycle in at least some small way?
Instead of throwing the tails of those veggies in the trash or compost (bravo), consider getting double duty from them. After you have used the veggie, place 1-2 inches of the base or stub in a bowl with water about ½ inch deep. In a week there should be visible growth. Roots will eventually form. Then plant in soil or planting medium. There, you now have one less item to get at the store in 6-8 weeks and you will know that no pesticides were used. (Have you googled “Dirty Dozen” to see what is on the updated list of foods likely to have residual pesticides?)
Visible growth can be seen on the lettuce, celery, bok choy and green onion in bowls of water. In the pot are green onions. Others have already been moved outdoors and they are doing well. This seems like recycling at its best. It saves money and assures quality. Very cool. I wonder what other veggies can be reused? Spinach perhaps?
Visible growth can be seen on the lettuce, celery, bok choy and green onion in bowls of water. In the pot are green onions. Others have already been moved outdoors and they are doing well. This seems like recycling at its best. It saves money and assures quality. Very cool. I wonder what other veggies can be reused? Spinach perhaps?