BHHS EWM Realty Releases Pandemic-Focused Market Report
In July 2020, Berkshire Hathaway HomeServices EWM Realty released its Insight 2020 Mid-Year Report, which highlights market trends for the first 200 days of 2020 (July 18th) compared with the same period in 2019. In addition to the report’s in-depth mid-year look at the market, a special report entitled, Impacts: How The Coronavirus Pandemic Has Affected The South Florida Real Estate Market, focuses in on the unique market trend that emerged as a result of the virus.
Over the past several months, it is clear that consumer behavior has changed. The process by which buyers and sellers bought and sold property adjusted due to rapidly changing conditions brought about by the pandemic. During the mid-March to mid-May period, homes were primarily shown virtually, and in-person showings focused on an abundance of caution—necessitating still today that everyone wear a mask and that common surfaces in the home are sanitized pre- and post-showing. Obviously, the pandemic would have an impact on the market; the question was the degree to which it would be affected.
The report, which can be accessed for free by visiting EWMInsight.com, revealed a sharp decline in sales from April 2020 to May 2020. However, shortly after the re-opening of Miami-Dade and Broward Counties, buyer activity soared. This was primarily because the pandemic hit during one of the busiest times of the year for the real estate industry. The demand for homes did not decrease; it was simply put on hold. In particular, single-family homes saw an increase in sales, surpassing condo sales for the first time in 18 years. “In Miami-Dade County, single-family home sales represented 57% of all sales, in Broward County, single-family home sales represented 56% of all sales. We haven’t seen single-family home sales surpass condos the sale of condos in over 18 years,” says Ron Shuffield, President & CEO of Berkshire Hathaway HomeServices EWM Realty.
Although the housing market is very active with buying activity, this rapid increase in sales is not being compensated with a healthy number of new listings coming to market. Shrinking inventories will quickly lead to a supply issue, which will ultimately lead to increasing prices. There simply won’t be enough supply to satisfy demand. This is an interesting trend that the Berkshire Hathaway HomeServices EWM Realty Research Team will be watching very closely over the coming months.
Other notable information offered in the Insight 2020 Mid-Year Report was some intriguing research on the Millennial generation and their participation in the real estate market. Millennials have now surpassed the Baby Boomer generation as the most active home buyers, making up 37% of all buying activity across America. The report also addresses state income-tax rates, estate taxes, and population growth, painting a compelling picture of how tax rates may be the cause of increases/decreases in the population of some states.
The pandemic has had an impact on the market — some were positive, some were challenging, and some remain to be seen. Despite this, it would be hard to argue with the fact that we may have never seen a better time to buy or sell a home — interest rates in the sub-3% range are historically at their lowest point ever, demand is high, and it seems the entire world wants a stake in South Florida!
