The virus hasn't just radically changed our daily routines; it has also transformed the real estate market.
Driven by consumer responses to COVID-19, the Greenwich June 2020 real estate market witnessed a surge in single family home sales contracts (97 this June versus 66 last June) and single family homes sold (76 in June 2020 vs. 60 in June 2019.) The second quarter's 27% increase in median price over the first quarter was also a direct result of the supply/demand tension created by the pandemic. Demand for suburban homes increased as people looked to move out of densely populated areas. At the same time, inventory decreased (down nearly 20%) as homeowners hesitated to put their houses on the market and open them up to prospective buyers.
The result was a seller's market where homeowners were suddenly seeing bidding wars and less contingencies. Below are some of the new trends we are seeing.
Increased Demand for Suburban Homes with Privacy and Outdoor Amenities: As Compass CEO Robert Reffkin explains in this recent CNBC interview, COVID-19 has shifted consumer preferences. People are moving away from urban areas like New York City to suburbs like Greenwich. There's been an increase in searches for single-family homes, pools and outdoor spaces. People are looking for privacy and land in areas that can be considered safe havens from urban areas. As one might expect, buyers are also looking for space for home offices as people increasingly work from home.
For further details, please see our Greenwich 2020 Q2 Market Report. As always, feel free to reach out to us to find out how much your home is worth in the current market.