How’s the market?
Are we only halfway through 2020? In all seriousness, our thoughts are with each and every one of you, and we truly hope that you and yours are safe and healthy during this time. It seems trivial to be considering what the real estate market is doing in the New River Valley for the first half of 2020, but the truth is that the real estate market is an important component of the health and vitality of any community, and so we continue to study, and learn, and share. Our goal for this report is to provide you the most accurate information as we can, and we hope you find it useful. As we wrapped up 2019, and looked forward into 2020, the looming question on the horizon was what tight inventory levels were going to mean to buyer demand. In 2019, that question was often answered by home buyers finding themselves in multiple offer situations, but as the pandemic became a reality we thought that surely buyers and sellers would sit things out for a while. The numbers have borne that out—at the start of January, the number of homes on the market in the New River Valley was 20% lower than the previous year, and has grown through the first half of the year to 25% lower. At the same time, buyer demand has remained nearly identical to this time in 2019, squeezing an already incredibly tight market.
We present you with our 2020 New River Valley Mid Year Market Report.
With the benefit of almost six months of experience with COVID-19 and its impact on the economy, it would seem at this point insincere to suggest that this trend of low inventory and high demand will continue throughout 2020. We simply don’t know what the long-term effects of all of this will be. But for the first part of 2020, COVID-19’s impact, broadly speaking, had little to no impact on home prices throughout the NRV. Using the benefit of hard-earned experience in previous economic downturns, however, we would suggest it’s at least prudent to expect that the economic impacts to the area’s real estate market could be felt in the latter half of 2020.
As with anything that could change, we aim to share what we learn as we go. If we can be of assistance in the meantime, please don’t hesitate to reach out. #MOVEboldly
We’re here for you. Feel free to reach out directly to your Nest Broker.