KPW Market Watch

THURSDAY, APRIL 30, 2020

Well, this has been the longest and strangest spring of my life and we are only halfway through! I am accustomed to a brisk, spring schedule of listing appointments, home inspections, contract negotiations, and closings. And while the team hasn’t stopped working completely, we are certainly working at a slower pace...for now.

There are currently five detached KPW homes listed as active in the MLS. They range in price from a low of $575,000 to a high of $735,000. The homes have been on the market from 14 to 54 days. Two of the houses are re-entries into the KPW real estate market and their days on market have been adjusted in the chart below to include time they were listed last year as well. Both homes have chosen a strategy of price reduction rather than addressing presentation issues (or our favorite strategy--a combination of both) and it will be interesting to see if that strategy pays off.

Eight detached homes, ranging in price from $524,900 to $715,000, are currently listed as under contract in Kings Park West. Days on market range from 1-30 days.

With four Queens under contract and two currently listed as active, this appears to be the Year of the Queen!

Since our last market update, fourteen detached KPW homes have closed for a total of eighteen closed listings since the beginning of 2020. This represents a 34% decline in the number of closed sales year over year.

So, what’s there to be optimistic about? Clearly, Covid-19 has had an effect on the real estate market. As the news filled with recommendations to close businesses and even whole states, real estate practices shifted dramatically. In the span of one week, we went from comfortably holding large open houses to shutting them down completely. The MLS has gone from allowing overlapping showings, during which multiple agents and their clients might bump into each other in a house, to restricting access to one agent and client at a time. Both sellers and buyers announced they were suspending their plans for moving.

But, as we move through this unusual time in history, we are seeing opportunities for everyone! With less inventory, sellers with great presentation and a little more patience than normal, are still seeing multiple offers and decreased contingencies (waiving of home inspection or appraisal is the most common). Buyers have benefited by taking advantage of less competition for those houses without stellar presentation and we are seeing more home sale contingencies being accepted. Showing practices have evolved to maintain the health and safety of buyers, sellers, and agents and typically involve gloves, masks, and disinfectant wipes.

As a team, this year we were expecting a later than normal spring market; more of our clients were hoping to list later in the year compared to previous years. This certainly has turned out to be fortuitous for our clients as it appears their timing will coincide with improvements to the local real estate market. After the abrupt slowdown in March, and as people are acclimating to our new reality, we are seeing steadily increasing showings, multiple offers, buyer and seller activity, and an increase in the number of mortgage applications for purchase (rather than refi).

If you are considering buying or selling this year, now may be the time to finalize your plans. Sellers, it’s time to get those home repairs and fix-ups done so as to be ready for a hopping June and July sellers’ market. Buyers, try to stay ahead of that market--the opportunities are out there for you if you look! (Buyers, be sure to ask your agent to research the Temp Off and Withdrawn market! There are some gems out there!)

For more info ☎️ (571) 276-9421 or 📧cathy.deloach@longandfoster.com