April home sales down in Pierce County; market ‘hit but not knocked out’ by COVID-19
New figures released Wednesday by the Northwest Multiple Listing Service offer the first full month of the coronavirus pandemic’s effects on the area’s real estate market.
Dramatic drops were seen compared with activity during the same period of 2019.
According to April figures, Pierce County saw total active listings for existing homes and condominiums drop by more than 11 percent year over year, with pending sales down 27.40 percent. Closed sales were down 22.40 percent from the same period last year.
Compared with March, new listings were down more than 23 percent in the county for the combined homes/condos listings from March, while total active listings compared with March were up 10.56 percent, a sign older listings were lingering.
Median closed sale price for existing homes in Pierce County for April was $405,000, up more than 13 percent from a year ago but down from March’s median closed sale price of $410,000.
Closed sales for homes/condos combined were down 9.19 percent; home sales alone were down 8.6 percent from March.
In the accompanying news release, Windermere chief economist Matthew Gardner said: “With the first full month of post-COVID-19 data in hand, it’s clear the Puget Sound housing market has been hit but not knocked out.
“The normally active spring market is significantly slower than normal due to COVID-19, but it has not come to a halt ... it is responding to the current circumstances exactly as expected.”
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, said in a recap of Pierce County sales issued Wednesday: “We are virtually sold out everywhere locally in the more affordable and mid-price ranges, and due to the COVID-19 situation we are experiencing fewer new resale listings in April versus April 2019.
“The sales activity intensity of homes in the more affordable and mid-price ranges in many areas is aligned with last year’s very strong sales activity intensity.”
Lenders such as JPMorgan Chase have tightened terms for new loans, requiring 20 percent down and a credit score of at least 700 to counter more homeowners seeking forbearance on mortgages, while Fannie Mae predicts that overall home sales nationwide will decline by about 15 percent this year.
Refinancing of existing mortgages is expected to make up to 56 percent of total mortgage originations volume, according to Fannie Mae’s Economic and Strategic Research Group.
This story was originally published May 7, 2020 at 5:00 AM.
