Uncertainty about where the market is heading is causing pending sales to drop. The chart below shows the historical data of pending sales by month. Over the past 3 years we have seen similarities from January to March. Previous years the MLS had approximately 17,000 pending listings, jumping to approximately 23,000 pending listings in March. This year we experienced a drop in pending listings. You can see from the numbers below we had a 27% decrease in pending listings. Normally we would have approximately 23,000 listings in March. This year we have 12,608 listings pending!
Interestingly the prices are still holding strong. So far we have not seen a big price reduction. Average sales prices have increased 4.54 percent from January to March this year. The percent of listing price closings are over asking! I think we will see a drop in prices and percent of list price vs closing price reduced. I noticed the Coronavirus started to affect real estate mid March. I think the stats are delayed and we will see a price reduction starting next month.
Looks like sellers are waiting to see what happens before listing their properties. This year from January to March we saw an 6.21% decrease in new listings. In 2019 we saw an 8.7% increase from January to March.
Active listings are continuing to drop to all time lows. Will the all time lows in house supply help keep the prices up? I have noticed a drop in demand from my own clients. With the uncertainty, people are wondering if they will have their job 30 days from now.