Highland Park Market Update: COVID19 Impact vs. 2019

How has COVID 19 affected the real estate market in Highland Park?  Is it a good time to buy or sell?  Back in May, low inventory levels were keeping prices strong and sales were starting to pick up after a slump in February and March.  So what’s happening two months later?

I am very happy to report that the trends that were starting to emerge two months ago have continued!  As you can see on this chart, the number of homes coming on the market still trails behind the same time period in 2019.  At the same time, the number of homes under contract and closed exceeds the sales volume we saw in 2019, including a clear slump in April and May.

 

Highland Park – Detached Single Family Homes
Number of New Homes on the Market, Under Contract and Closed
2020 vs 2019:   January 1 – July 31

	New Listings			Under Contract			Closed
	2019	2020	Change	2019	2020	Change	2019	2020	Change
January	56	71	27%	21	25	19%	13	26	100%
March	108	72	-33%	30	41	37%	27	35	30%
April	125	33	-74%	39	25	-36%	40	42	5%
May	104	71	-32%	44	43	-2%	33	28	-15%
June	106	87	-18%	38	88	132%	36	43	19%
July	107	108	1%	40	77	93%	46	60	30%
Year to Date	698	539	-22.8%	252	347	37.7%	212	255	20.3%

 

But what about prices and home values?       

Many of my colleagues have a feeling that prices are on an upswing, but on this point, I am not quite as optimistic.  The average and median home prices in Highland Park 2019 versus 2020 are relatively flat so far.  I will continue to monitor this.  Keep in mind that in 2019 prices dropped in Highland Park from 2018, by at least 10%.  This may be another factor driving the hot Highland Park market, in addition to incredibly low interest rates.

The number of showings each week within Highland Park was rather dismal in from the middle of March to the middle of May.  Since then, showings have skyrocketed well above the weekly numbers we had in 2019, in spite of the pandemic and recent protests.

Staying Safe While Buying or Selling a Home

Realtors are now allowed to do open houses with new rules and limitations. 

For buyers, be prepared to wear mask, and possibly gloves. You may be asked to sign a COVID disclaimer prior to a showing or before entering an open house.  In some situations, sellers will request that you have a virtual showing (broker walks through the house while you are watching on your phone or computer) or watch a 3D tour before you can schedule an in-person appointment.

Other than actually looking at homes, all other aspects of home buying can be done virtually without any in person contact.

For sellers, I can’t emphasize enough that your first showing is online. We have seen a major increase in online home searches.  This is what I have been doing to market the properties I have for sale to help keep everyone safe.  These procedures and tools allow buyers to see “more” of the property before making an in-person appointment, and thus eliminate trips to homes up front that don’t meet their needs:

• Floor plans required for all properties
• 3D tour for most properties
• If a prospective buyer would like a live virtual tour of the property, we can accommodate that too. This allows them to ask questions live while I am walking through the property.
• Social media – I am regularly posting all of the properties on social media with videos or the 3D tours.
• If someone wants to see an occupied property in person, after they’ve seen the video, 3D tour and floor plans, then the sellers and I work together to make it happen in an environment that is safe for everyone (masks, gloves, hand sanitizer). The seller or I will turn on lights and open doors and cabinets to minimize touching any surfaces. 
• @properties provided all of their brokers with a CORONA VIRUS SHOWING DISCLAIMER form that each prospective buyer and their brokers must sign in order to see any property that is occupied. The disclaimer basically states that the signer is aware of the risks and that they are currently symptom free and haven’t knowingly had contact with anyone that is ill
• Of course if a property is vacant, then it can easily be shown.

I am collaborating and brain-storming with clients and colleagues to discuss real-time solutions for specific situations.  That enables all of us to adjust to the changing environment that we are working in right now with new best practices for marketing and showing properties.   The real estate industry has quickly pivoted to provide as many services as possible electronically to keep all participants safe.  This includes document signing, appraisals, mortgage applications, closings and much more.

Please reach out to me if you have any questions about the market.