Monthly Market Indicators
While the stock market recovered significantly in March, the effects of COVID-19 to the economy continue to build. In just the last four weeks, more than 20 million people filed initial unemployment claims according to the United States Department of Labor, fueled by stay at home orders and a slowdown of economic activity across the country. Added to the unemployment claims from March, more than 30 million people have become unemployed since COVID-19 has become widespread in the U.S. In the face of these challenging times, real estate activity in April slowed significantly.
New Listings in Harrisburg increased 62.5 percent to 39. Closed sales were up 38.5 percent to 18. Inventory levels increased 4.8 percent to 66 units.
Prices continued to gain traction. The Median Sales Price increased 4.1 percent to $241,981. Days on Market was down 23.9 percent to 63 days. Sellers were encouraged as Months Supply of Homes for Sale was down 8.5 percent to 3.9 months.
While the effect of COVID-19 continues to vary widely across the country, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
Housing Supply Overview
In April, the stock market pared some of its March losses while overall economic activity nationally continued to slow. With more than 20 million initial unemployment claims filed nationwide in April on top of more than 10 million initial claims in the last two weeks of March, suddenly much of the country is out of work, at least temporarily. This dramatic economic slowdown is reflected in this month’s real estate activity, which is down significantly. For the 12-month period spanning May 2019 through April 2020, overall Closed Sales in Harrisburg were up 25.6 percent for the period.
The overall Median Sales Price was up 6.9 percent to $235,000.
Market-wide, inventory levels were down 22.5 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 21.4 percent. That amounts to 3.2 months supply for Single-Family homes and 4.0 months supply for Condos.