⛑Covid19 – 🌍How Far Off is the Real Estate Market from where it would be? Booming..Recession?
⛑Covid-19 – 🌍How Far Off is the Real Estate Market from where it would be? Booming..Recession? The number will shock you. 😨
The virus has been affecting the market, but just how much? For the last three weeks now, I’ve been closely monitoring particularly all of the Orlando’s zip codes and out to the West. In the last week in the Winter Garden and Clermont Areas, all property types, including condos and town homes, there were 251 properties that went pending. Keep in mind that out of 251 pended properties, we know do not expect all of these to close. So as realtors we usually factor 85% of properties will close. Due to Covid19, that’s probably going to be an even lower number because lending guidelines are tighter, so we’re probably not going to close 85% it might be 80% but I’m going to be generous here. Out of 251 pendings, some will likely fall out due to cancelations, buyer’s not qualifying, and so on. Assuming an 85% close rate, there will be around 213 sales in the next 5 weeks. Today is the April 17th. If I were to go to the same week, but a year back, so April 17th 2019, and made an assumption that the percentage of pendings that were from that week, closed five weeks in the future, we know how much closed at that same timeframe, we would discover that there were around 492 closings during that time. Considering we are estimating the closing of 213 properties this year, that means we are just inside of 44% of what we should be doing. In the past, I’ve seen this number closer to 70-75%. The average price is right around $300k. There’s a whole lot of activity right now in the lower price ranges where there’s more demand and a dropoff above 400,000, meaning, it’s very thin above that going under contract. A mix of the properties that hit the market, those properties are homes that have been in the market for less than 15 days. A lot of them are homes that were newly listed to the market that went on and sold.
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About the Author – Jared Jones has been a Florida resident for 26 years. Since then, Jared has been a part of the top 50 in Realtor volume for the Orlando market several times out of more than 14,000 agents, including becoming the top Realtor in the country by volume in 2010 and 2011. He has been featured in Time Magazine Online, and The Wall Street Journal Real Trends Report of Top Agents. He was was listed in the Wall Street Journal and Real Trends Top Agent List, making the #4 spot in the nation by volume. He was featured in “40 under 40” Business Professionals in 2012. He frequently does outreach and training to help shape the minds and business of the local real estate professionals around him. When not running his real estate machine, Jared enjoys spending time with his wife Carrie and four boys, Talon, Connor, Bryce, and Simon doing church activities or catching the very infrequent round of golf! Jared credits his business to blessings given to him from God. He is active in his church and accredits all of his success to adherence to Biblical principles which he chronicles in his book Ancient Wisdom for Modern Day Success.
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