COVID-19 pandemic and the effect on Upper Florida Keys real estate market
What's the most common question we hear as Realtors in the Florida Keys? Well in March of 2020 the answer is definitely "How's has real estate market in the Keys been affected by the COVID-19 virus ".
Many have the preconceived notion that the answer will border on catastrophic but have been surprised to hear my response - "based multiple views daily of the MLS 'hotsheet', sales are closing and new contracts are being written".
Simple Market Stats for homes from Key Largo through Islamorada - 2020 as compared with 2019 for the period of March 7 through April 7
- Closed Sales are 53 in 2020 as compared to 68 for 2019 - (78%)
- New Contract/Pendings are 32 in 2020 as compared to 44 for 2019 - (73%)
- New Listings are 73 in 2020 as compared to 117 for 2019 - (62%)
- Withdrawn/Cancelled Listings are 19 in 2020 as compared to 18 in 2019 - (106%)
What the numbers indicate
- Closed Sales - Yes, the actual number of closed sales is down from the prior year with the COVID-19 pandemic certainly having some effect. Some buyers who had planned to get mortgage financing failed to qualify due to unexpected employment challenges while others may have had a change of heart given the circumstances.
- New Contracts - The number that surprises many people is the new contracts. While the numbers are down as expected, the figure is nowhere near catastrophic. Just as with actual closings, new contracts are affected by the ability of borrowers to qualify for mortgage loans. Interest rates are down (a good thing) but job losses are way up (not good). Those who can buy are viewing properties, virtually at first in many cases, and using a good real estate agent to determine the best values.
- New Listings - This number was expected to hold flat or even increase but is down substantially. As one of the most reliable predictors of market stability in the Keys, the small number of new listings suggests current owners enjoy not only the physical environment around them but the future of their large investment in the Florida Keys
- Withdrawn/Canceled Listings - This figure is essentially flat with the only noticeable observation that the properties in 2020 tended to be at the higher end of the price range as compared to 2019. Perhaps the luxury owners want to spend more time here while the owners in the more modest price range are more affected economically.
What's next if you are a seller or buyer
If you are considering selling and moving on to another opportunity, interest rates remain low and the purchasing power for many buyers is at a high point. You can be pretty sure that anyone going out to view homes during this period is a "real buyer" and not simply a casual looker. Good real estate agents are screening their buyers more stringently than ever and have protocols in place for safe showing procedures designed to keep you and your family safe. Get started by getting factual information about your neighborhood using our Florida Keys neighborhood report.
If you are in the market to buy, it's a new world in that you will probably begin and end your home search virtually. On a case-by-case basis, physical showings are being conducted, inspections are being performed, contracts are being executed, lenders are lending, and closings are happening. We've just had to adapt a bit.
KeysListings.com has quick links to listings at all Key Largo neighborhoods and Islamorada. Properties for sale in the Florida Keys MLS for other subdivisions and condominiums are also available. Try the search at Keyslistings.com yourself or ask me and I will set you up.
Contact Jim for assistance
Whether you prefer to DIY on my website or talk in person, just let me know. You may contact me using the button at the top right of my webpage or give me a call to set up a Zoom meeting or Google Hangout.
