Real Estate Transactions Plunge in April Due to COVID-19
Highlights are as follows:
- Existing single family home sales under $100,000 and over $1 million were down by more than 30%.
- Single family residential inventory levels have declined by approximately 20% as home sellers removed properties from the market.
- Median home prices across all housing types rose by 7.4% with gains shown in every region (98 straight months of year-over-year gains).
- Office and industrial transactions were off by 60% (year-over-year).
- Hotel sale transactions were virtually non-existent during April, down by 98%.
- Commercial property prices have risen by 6.5% year-over-year.
The Florida Housing Market
During April 2020 the real estate market in the state of Florida has taken a very big hit from COVID-19 with the number of single family home sale transactions declining by more than 5,500 units or 20.7% year-over year. Inventory levels throughout the state also have declined by almost 13% and prospects for a bounce in May appear to be slim as pending single family home sales are down by more than 12,000 units or 26.5%.
South Florida Housing
Out of all the major market areas in the state, Palm Beach, Broward and Miami-Dade counties were at the top of the list with respect to the decline in single family transactions. The South Florida MSA was lower by more than 32% year-over-year with new pending sales off by 52.9% and pending inventory down by 35.7%. Based on those figures alone, we can expect similar results for the month of May.
The lone bright spot is that both the median sale price and the average sale price grew by 5.6% and 4.7%, respectively.
Inventory levels continued to trend downward as single family home sellers have removed their properties from the market at a rapid rate. In South Florida inventory declined by 15.4% which represents a 4.5 month supply of homes on the market.
To learn more about the residential and commercial real estate market in Palm Beach County as well as throughout South Florida, please visit the Real Estate Market Reports page on our web site.
Every month our market report page is updated with the latest published reports on the housing market in Palm Beach, Martin, Broward, and Miami-Dade counties as well as commercial real estate information which is provided by data providers and local market experts.
Real Estate and Economic Insights
Following are several news articles which we found that highlight the current state of housing and commercial real estate.
More than 8% of U.S. mortgages now in forbearance: MBA weekly survey
By Lindsay Dunsmuir, Reuters
“Roughly 4.1 million U.S. mortgage borrowers have had their payments paused or reduced as the novel coronavirus outbreak hits household finances, but the increase in the number of people needing such help is slowing, the latest weekly survey from the Mortgage Bankers Association showed on Monday.”
Rethink Your Office Space
By Enrique Dans, Forbes
“One of the major consequences of the pandemic — the largest experiment in working from home — is having a major repercussion on the real estate market, particularly office space, with predictions of a collapse in cities like New York.”
The Mall of America hasn’t paid its mortgage in two months
By Lauren Thomas
“The biggest shopping center in the country, The Mall of America, has missed two months of payments on its $1.4 billion mortgage, a sign of just how much retail real estate owners are reeling during the coronavirus pandemic.”
For All Your Real Estate Needs
Chris and Amy Losquadro remain ready to serve our clients and partners through this trying time. We are able to assist with all of your real estate needs through video conferencing, remote showings, virtual marketing and many other additional tools that allow us to safely conduct business within the CDC guidelines.
If your clients, colleagues or friends are concerned about their real estate holdings, now is the time to contact us to discuss the particular situation and how best to mitigate any upcoming economic uncertainty. We continue to successfully complete transactions and are here for you during this time of need.
Contact us at 561.584.8555 or via email at firstname.lastname@example.org.
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