At Start of Phase Two the Pace of 2020 Contract Signing Is Still Slowing
Scott P. Rogers
Welcome to Phase 2 in Virginia, folks! :-)
Here's a quick summary of what is changing...
- Social distancing of 6 feet continues
- Gatherings of up to 50 individuals (increased from 10 person limit in phase one)
- Restaurants can offer indoor seating, but are limited to 50% capacity
- Gyms and fitness centers can re-open indoor facilities, but are limited to 30% capacity or 50 individuals (whichever is less)
- Indoor and outdoor swimming pools can open for exercise and instruction
- Recreational sports can be held in both indoor and outdoor spaces, with a 10-foot distancing
- Retail businesses continue to operate at 50% capacity
- Religious establishments/places of worship continue to operate at 50% capacity
- Public beaches remain open
- Face-coverings still required for indoor spaces
So, how about it, home sellers -- are you ready to put your homes on the market? I am confident we'll have very few 50+ person showings... ;-)
As shown above, the pace of home buying (contract signing) has slowed over the past month.
- One month ago, YTD contracts were 3.97% behind 2019.
- Now, YTD contracts are 6.25% behind 2019.
I have theorized for a few weeks now that this slow down in buyer activity is a result of fewer sellers being ready to sell as opposed to fewer buyers being willing or able to buy.
If that is the case, will this new phase mean more sellers will sell and thus more buyers will buy and thus that we'll see the 2020 trajectory start to catch back up with 2019?
Maybe. We'll wait and watch and see together.
Happy Friday!
