It is without a doubt that the coronavirus pandemic impacted the real estate market. As many people get furloughed and businesses owners are required to shut down their business, many find themselves in a situation not as convenient to purchase a home.
On the other side, there is also a large group of people that have embraced the "work from home" life-style and now need a new home that best suit their new way of life.
From in home gyms to home offices, many buyers are now looking for properties that can accommodate activities they conduct on a daily basis without having the need to leave their homes.
As many homeowner associations were also required to shut down their activities, many residents who live in communities where amenities are vast, also found themselves not being able to take advantage of such.
Overall, we have seen a decline in closed sales but as the economy stabilizes and people adjusts to the new norms, the real estate market should start picking back up, especially in small cities and suburban areas as many are now choosing to leave the large cities and highly populated areas.
Below you will find a brief synopses of how the real estate market did in May of 2020.
How's the real estate market May 2020
United states Real Estate Market
Existing home sales fell by 26.6% compared to a year ago while the median price increased by 2.3% at $284,600 compared to May of 2019 at $278,200.
According to the National Association of Realtors, 58% of the houses sold in May 2020 were on the market for less than a month and the average days on the market was 26 days.
Inventory remains low, down by 18.8% year over year with a 4.8 months supply of inventory.
Also read: How to create a home owner management binder
Florida Real Estate Market
As expected, sales are down as well in the state of Florida. Single family home sales are down by 36.2% and Townhouses and condo down by 50.3%.
The average sales price also experienced a decline in the state; where single family homes now are at $353,819 with 0.3% decrease while townhouses and condos had an increase of 1% and is now at $281,694.
Although there was a decline in sales, the average days on the market remained rather low with 32 days for single family homes and 44 days for townhomes and condos.
Inventory is also down for both single family homes at 18.3% with a 3.3 months supply of inventory and townhouses at -4.3%. with a 6 months supply of inventory.
As for single family home foreclosures there were a total of 409 for the entire state compared to 755 in May of 2019.
Lee Country Real Estate Market
Sales were also down in the county of Lee for the month of May in 2020. Single family homes closed sales were down by 39% and down 54.5% for townhouses and condo.
The average sales price also saw a decline for both single family homes and townhouses. Single family homes are now averaging a price of $352,762 which is down 0.7% compare to May of last year and townhouses are now at $251,752 with a decline of 7.1%.
However, low inventory shows that although the market has been impacted by the current situation, real estate is still in high demand. Especially single family homes which are currently down by 27.5% with a 4 month supply of inventory while townhouses are down by 17.1% with a 5.2 month supply of inventory.
Collier County Real Estate Market
As the real estate market takes a hit, the first ones to really feel the impact is the luxury market. As people tend to play more safe and become skeptical on shelling out thousands, perhaps even millions of dollars, it is without a doubt that sales decrease are almost a definite for the niche.
And that couldn't be more true for the county of Collier. With homes well above the national average, the area saw a pretty big decline in sales and even in price during the month of May.
Single family home sales sat a -45.9% compared to May of 2019 and townhouses at -50.7%. As mentioned previously, average sales price also saw a decrease, single family homes went from $800,205 to now $779,151 and townhouses from $473,609 to now $447,919.
As any other luxury market, the average days on the market tend to be a little longer than usual; single family homes were on average 76 days on the market and 79 days for townhomes in Collier county.
Inventory is also much lower compared to last year, single family homes inventory is down by 16.1% with only 2,801 homes available on the market and a 6.4 months supply of inventory.
Townhomes experienced low inventory as well, down by 7.8% year over year and a 7.3 months supply of inventory.
There were a total of 2 foreclosures for the entire county of Collier during the month of May 2020 compared to 13 in May 2019.
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