Strong start to the year
The median price of sold single-family homes increased 11% in Q1 2020 to a new all-time high of $495,500.
- 27 towns in Essex County saw Year on Year increases, while 7 saw declines. Q1 often shows wide swings from year to year, as it is the quarter with the lowest sales – and the worst weather.
- Sales declined 4% reflecting low inventory – it was too soon for sales to be affected by COVID-19
- The condo/townhomes median sales increased 9% to $332,000 on flat sales Year-over-Year
Decline in accepted offers
As the pandemic crisis unfolded, the number of accepted offers on single-family homes in Essex County declined. Through the week ending March 6, the number was flat with 2019, but the next three weeks saw declines of 13%, 14% and 20%. The pace of decline then accelerated with the first two weeks in April seeing declines of around 50%.
Overall inventory remains tight
As of April 1st, overall supply was 1.9 months (a market is traditionally considered to be in equilibrium between buyers and sellers when there is 6 months of supply). Supply varies greatly by price: 1 month for SFHs under $750,000, 4 months from $750,000 to $1.5 million; and 18 months at prices over $1.5 million.
Properties sold more quickly
The number of days a single-family home was on the market before receiving an accepted offer, reflecting low inventory and strong demand, dropped to 18 from 28 in Q1 2020; for condos from 22 to 15.
Volatile mortgage rates
The disarray in financial markets extended into the mortgage market, with disruptions in the secondary market – where most conventional mortgages are sold – and with servicers grappling with demands for forbearance and deferral. On one day, the 30-year Fixed Rate Mortgage jumped by 1%. By early April, following Federal Reserve intervention to provide liquidity, mortgage rates had stabilized in the mid 3s, but it is still an uncertain market.