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May typically marks the start of the summer real estate season, with buyers and sellers taking advantage of nice weather and summer vacation to move. Of course, this year has been anything but typical.
So what does this mean for the Atlanta market right now?
New listings climbing
After a slower March for the market, we started to see new listings climb back up in April and this trend continued into May. This month, we saw 11% more single-family homes listed in Atlanta vs. last month, indicating that more and more sellers are feeling comfortable putting their home up for sale.
Inventory remains tight
While new listings are continuing to climb, overall housing inventory is still lower than we’d expect for this time of year. Pre-coronavirus, there was already a nationwide shortage of homes for sale compared with previous years. The existing shortage coupled with sellers sitting out towards the end of March and much of April meant less homes were for sale in May.
Buyers flood the market
Conversely, once stay-at-home requirements were lifted, buyer activity soared. In Atlanta, the number of homes that went under contract in May 2020 was up 40% from April 2020. Additionally, the increase in weekly home showings, as indicated in the graph below, shows us that buyer interest has rebounded to levels seen before the pandemic.
So what does this mean if you’re a buyer or seller?
For buyers, thousands of new listings are hitting the market, but not at a rate that will close the inventory gap just yet. This means there are fewer homes on the market heading into June with more interested buyers entering the market each day. If you’re thinking about buying, having a competitive offer (such as a contingency-free offer, which you can make with Orchard) will help you stand out to sellers who may receive multiple bids.
For sellers, median home prices continue to remain stable, suggesting that most sellers are receiving offers close to their original list price. The average number of days a home was listed on the market before selling (DOM) was slightly up from 18 days last May to 22 days this year. This suggests that most sellers don’t have to wait too much longer to receive an offer.
Social distancing measures (six-foot distance, gloves, masks, thorough cleaning between showings, etc.) will also still need to be implemented when anyone visits your home. With Orchard’s Move First service, we’ll take care of deep cleaning and listing your home after you move, so you can skip the stress of home showings.
For a deeper dive into the Atlanta area’s real estate recap for May 2020, read on.
By The Numbers
New listings in May. Although down 28% from this month last year, listings are continuing to pick up each week. With over 2,200 new listings posted the week of May 18 alone, weekly new listings are nearing pre-coronavirus levels.
The median percentage of a home’s original list price that it ended up selling for. This suggests that sellers haven’t had to make big price cuts in order to get their home sold. In Atlanta, this normally ranges from 95-97%.
Increase in homes that went under contract in May 2020 vs. April 2020. Once restrictions were lifted, buyer activity skyrocketed in May. Not only did more homes go under contract compared to last month, homes-under-contract were up 2% vs. this time last year.
“Buyer activity has soared since restrictions were lifted. We’re fielding more interest in home tours each day and our team is pivoting quickly in how we show homes in the ‘new normal’, whether in-person or through virtual tours.”
— Louise Bannister, Orchard Home Advisor
Wondering how long your commute will be to a potential home?
You can now enhance your home search on Orchard’s website by entering the address of locations important to you in our Home Match Quiz. Whether it’s an office, school, or gym – enter the address and your desired commute time and we’ll do the rest.