While the stock market recovered significantly in March, the effects of COVID-19 to the economy continue to build. In just the last four weeks, more than 20 million people filed initial unemployment claims according to the United States Department of Labor, fueled by stay at home orders and a slowdown of economic activity across the country. Added to the unemployment claims from March, more than 30 million people have become unemployed since COVID-19 has become widespread in the U.S. In the face of these challenging times, real estate activity in April slowed significantly.
New Listings in the Twin Cities region decreased 22.9 percent to 5,967. Pending Sales were down 20.1 percent to 4,612. Inventory levels fell 13.1 percent to 9,279 units.
Prices continued to gain traction. The Median Sales Price increased 8.9 percent to $305,000. Days on Market was down 17.5 percent to 47 days. Sellers were encouraged as Months Supply of Homes for Sale was down 18.2 percent to 1.8 months.
While the effect of COVID-19 continues to vary widely across the country, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®