Monthly Market Indicators
As we progressed through February, the actual and expected impacts of COVID-19 continued to grow, with concerns of economic impact reaching the stock market in the last week of the month. As the stock market declined, so did mortgage rates, offering a bad news-good news situation. While short term declines in the stock market can sting, borrowers who lock in today’s low rates will benefit significantly in the long term.
New Listings in Harrisburg increased 92.9 percent to 27. Closed sales were down 60 percent to 4. Inventory levels increased 9.6 percent to 57 units.
Prices continued to gain traction. The Median Sales Price increased 10.6 percent to $257,095. Days on Market was up 20.8 percent to 94 days. Sellers were discouraged as Months Supply of Homes for Sale was up 3.6 percent to 3.8 months.
The recently released January ShowingTime Showing Index® saw a 20.2 percent year-over-year increase in showing traffic nationwide. All regions of the country were up double digits from the year before, with the Midwest Region up 15.7 percent and the West Region up 34.1 percent. As showing activity is a leading indicator for future home sales, the 2020 housing market is off to a strong start, though it will be important to watch the spread of COVID-19 and its potential impacts to the overall economy in the coming months.
Housing Supply Overview
Mortgage rates trending lower are a boost to home buyers, but the declines in the stock market have both a psychological and practical impact for some prospective home buyers. A watchful eye must be maintained on the spread of COVID-19 and whether it begins to impact the overall economy, which would lead to a tempering of buyer activity in the future. For the 12-month period spanning March 2019 through February 2020, overall Closed Sales in Harrisburg were down 27.8 percent for the period.
The overall Median Sales Price was up 10.3 percent to $223,900.
Market-wide, inventory levels were down 12.9 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 10.9 percent. That amounts to 2.9 months supply for Single-Family homes and 3.8 months supply for Condos.