The Market is Hot Right Now! Houses are going under contract right and left with not enough inventory to keep up with demand. Is it pent up demand from people staying home during Covid-19? Or the unbelievably low interest rates? Or a desire to get out of cities and work from the Vineyard?! Watch or read on to find out!
Things are busy here in the real estate world on Martha’s Vineyard!
With so many unknowns during the Covid-19 crisis, we know this – We don’t have enough inventory and many new listings are going under contract within a few days of hitting the market.
First, let’s looks at some stats for Island sales in May. They were down, which is no surprise since these closings would be for homes that went under contract a month or two ago. March & April was in the height of the pandemic with many people staying home and not sure of what the future would bring. As far as numbers, we had 19 sales in May, compared to 40 last May.
While there were less homes sold, the number of properties that have gone under contract this May is the same exact amount as last year, which is 21. There has been low inventory for quite some time and that has been exacerbated by the corona virus.
Some sellers have held off on listing their properties and we have many buyers who just can’t find anything to purchase. Last May, we had 69 new listings hit the market, where this May, it was just 48.
The flurry of activity right now could be due to both this lack of inventory and the pent up demand, as people had put their plans on hold in March and April.
Regarding the national economy, experts are still predicting an upturn during the second half of the year.
Sam Khater, the Chief Economist at Freddie Mac has said “Although the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year. Going forward, we should see a recovery starting in the 2nd half of 2020”
So, it seems like Martha’s Vineyard is coming out of this even sooner and we’ll have to see if this trend continues, as is predicted on a national level.
The interest rates are amazingly low and are expected to average out around 3.4% through the rest of the year. So it only makes sense that anyone in the position to make a purchase now, takes advantage of that.
If you’re thinking of buying or selling, please reach out – I’d love to chat!