"What is happening in the real estate market right now?"

That's the question I keep getting asked, so here are the facts to give everyone a better idea.

The National Association of Realtors conducted a flash survey* last week to get a feel for Covid-19's effects on the behavior of buyers and sellers nationally. Here's what they found:

• 60% of buyers have postponed the buying process for a couple of months.
• 12% of buyers have postponed their search indefinitely.
• 12% of buyers are still shopping but doing so only by virtual methods.
• 8% of buyers are still fully engaged in the buying process - no change.
• 63% of buyers expect lower prices on homes now.
• 75% of sellers have not reduced their price to attract buyers.
• 57% of sellers have postponed selling their house for a couple of months.
• 17% of sellers are continuing to sell their home, virtually.
• 10% of sellers have postponed their plans to sell indefinitely.
• 13% of sellers have reduced their price by less than 5%.

*NAR Flash Survey: Economic Pulse April 12-13, 2020

Locally, people continue to buy and sell homes and land, despite the nearly complete shutdown of our state's economy.

For non-commercial properties in the entire Southwest Michigan area, from 3/16/2020 to 4/21/2020, DURING THE SHUTDOWN:

• 241 new listings have gone on the market.
• 69 listings have moved into Pending Sale status.
• 238 listings have sold.
• 47 listings have been temporarily withdrawn from the market.
• 25 listings have been cancelled.
• 27 listings have been extended so they don't expire.
• 80 listings have gone back on the market which had expired.

*From information provided by the Southwest Michigan Association of Realtors on 4/21/2020.

These numbers are not what we would expect for a typical spring market, but then, this is no typical spring market. And the fact that so many transactions are happening while no one can visit properties in person speaks volumes for the overall strength of the housing market in Southwest Michigan.

But how can properties continue to hit the market when no one is allowed to leave their homes? There are some creative options (which stay within the law and keep people safe), so I'll be writing another article on that shortly.

It's no surprise, however, that the majority of people are waiting for travel to be reinstated before they sell. I expect a surge by summer in both homes hitting the market and in active buyers. If you or someone you know has questions about what's happening with real estate, please feel free to give me a call.