Texas real estate made big gains before the novel coronavirus hit, and according to recent surveys, more Realtors refusing to budge on price despite the coronavirus-related market slowdown. However, more renters are looking to pull up stakes despite lockdowns and shelter-in-place orders. Find out about these trends in this week’s Dallas real estate news roundup.
Texas Real Estate Hits High Notes Pre-Coronavirus
After accounting for seasonal factors, existing homes sold through Texas Multiple Listing Services reached a record in February, said the Real Estate Center at Texas A&M University. That milestone was quickly forgotten, however, with the arrival of the COVID-19 virus.
“A great beginning to the real estate selling season was suddenly awash in disruption,” said Dr. James Gaines, chief economist for the center.
“Texas existing-home sales increased 2.6 percent year over year in February, extending eight months of positive growth,” he said. “Low mortgage rates and a healthy labor market drove resale activity.”
According to the National Association of Realtors (NAR), February marked the highest month of home sales nationally since February 2007, rising 6.5 percent from January and 7.2 percent from a year ago. All of the gain was from sales of single-family units, which rose 7.3 percent from a year ago to 5.17 million sales.
Center Research Economist Dr. Luis Torres said February is likely “the last hurrah” for the housing market for a while.
3 out of 4 Realtors Won’t Budge on Listing Prices
Nearly 3 in 4 Realtors currently working with sellers this week – 74 percent – reported their clients haven’t reduced listing prices to attract buyers, according to a new survey from the National Association of Realtors.
This suggests interested home sellers are remaining calm and avoiding panic selling during the uncertain economic environment brought about by the coronavirus pandemic.
“Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months,” said NAR Chief Economist Lawrence Yun. “The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”
Renters Look For New Leases on Life in April
It’s been almost two months since the pandemic was declared an official crisis in the U.S., intersecting with what was supposed to be the beginning of the rental season.
While in mid-March Rent Cafe saw searches on their website drop, the most recent April numbers are showing not only a return to pre-crisis levels, but a 17 percent increase compared to the beginning of March before the drop. Starting with the end of March and into April, searches have been growing from one week to the next. The bounce-back and realignment of apartment searches with typical seasonal trends are positive indicators that consumer optimism is returning.
The upward shift and optimism are further confirmed by real apartment seekers. In a survey recently conducted on RENTCafe.com renters said they do not intend to postpone their moving plans. Out of a whopping 9,000 respondents, 62 percent said they are moving as soon as they find an apartment, despite the COVID-19 pandemic. Only 11 percent said they’re staying put, while the rest were either undecided or postponing their move. Additionally, 42 percent are not changing their apartment selection process, 28 percent of the participants indicated taking advantage of virtual tours to help choose an apartment.
