July, 2020 Housing Market Update

CLARK COUNTY, USA

SELLING SAFELY DURING COVID19

You won’t read this in the paper.

July 29, 2020 Monthly Report

Are Homeowners Nervous About Selling? 

The lockbox chart below shows that buyer activity is strong while the second chart shows that homeowners have developed a strong reluctance to sell. Current listings are down 30% from May 2019 and on a trajectory to decline further during a time that typically is growing. These two conditions are creating a sellers market that continues to grow stronger. Prices are on the rise and buyers continue to find few homes to choose from. 

Sold sales as compared to active listings (inventory ratios) dropped big time from 2.3 in April to 1.6 in May. This is a huge drop and will likely drop again next month because pending sales increased 16% from April to May. Pending sales from May should be closed by June which will likely bring the inventory level of 1.6 down even further. We have not seen inventory levels this low since the crazy era of 2005-2006.

These unusual conditions are temporarily creating a wonderful time to sell. I can only assume that sellers are afraid to sell over the risks associated with Covid19. If I could convince just one homeowner to take advantage of this unique time it would make my day. No, it would make my month.

 Let me explain what sellers and agents can and should do to minimize the risks for everyone from Covid19.

  1. Buyers are allowed to tour homes 3 at a time including the agent as per state regulations. (Naturally, this could change as Covid conditions change.)
  2. Listing agents should provide instructions to buyers agents to have  buyers use masks and hand cleaners before entering a home.
  3. Listing agents should provide a sign instructing buyers to wash up at the kitchen sink upon entering the home.
  4. Listing agents should include instructions for buyers to minimize contact with the home as much as possible. 
  5. Listing agents or sellers should place hand towels and a soap dispenser at the kitchen sink.
  6. Sellers should follow up after a showing with alcohol wipes on door knobs both inside and outside.

I know the idea of catching Covid19 is horrible. I am following the news reports too and I hear you. Keep in mind that in the current market and using carefully planned strategies, one can minimize the time the home is on the market. It is common for a home properly priced to be on the market for less than one week. My last sale was on the market for one day with 6 showings, 3 offers and the final price was bid upward substantially well above the list price. This means you get more for your home sooner and you have to wipe down door knobs for only one  day. Isn’t that worth selling now rather than months later when the market may change. Nearly 50,000 unemployed is not a good thing. 

If you have questions or want to talk about selling now vs later, just call and we can discuss it.

Thank you.

Regards,

Chris Kelsey, Keller Williams PP

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