THE question on everyone’s lips is: “How is the pandemic affecting Northwoods real estate?” The answer is not so simple. It is also too early to tell. It is a time of uncertainty for almost every business in each industry right now. I thought it would be a good time to look at YTD Home Sales in particular.
To try to have an idea of what’s happening, I took a look at the numbers. What I did with this chart was to look back at the year-to-date sales from the last 3 years and compare them. January 1 to April 24, 2020 258 homes have sold. In 2019, 247 homes sold in this same period so we are up 4.2%. We had a better year in 2018 when 295 homes had sold (down 12%).
Can we draw conclusions from that? Probably not other than to say we have not yet seen a huge drop in YTD Home Sales volume due to COVID 19. I can say that showings are way down. They should be as we are still under a Safer At Home order from the Governor. I can say that there has been a great deal of interest in the lake chains and in vacant land (particularly large parcels). It is understandable that many people are no longer putting off the purchase of land here in order to build the Northwoods home they’ve envisioned, perhaps for some time.
The one trend that is evident is the downward trend in listings. We have went from 564 listings in 2018 to 439 listings in 2019 to 407 in 2020. So we are down 27% in the number of listings from 2018. That is a significant drop. The reduction in inventory will have an effect on unit sales and values. Look for a drop in unit sales and an increase in volume.
The weather is warming. Many of the lakes are now open. And, we just had an incredibly beautiful Spring weekend…not a cloud in the bright blue sky and temperatures in the low ’60’s. I would love to say come up and enjoy the Northwoods but I will wait until next month. Stay safe!