July and August update:
The market is currently the busiest I have ever seen it for this time of year, and many homes are selling a good 2-4% over asking price with multiple offers. The low inventory plus high demand is causing these price increases.
With lots of time being spent inside people are focusing more on housing. I've noticed more people are looking for the larger house and/or larger yard so they have more space to enjoy. Upgrading from a smaller home or apartment to a larger home, or a townhome with a yard has become much more common.
The market is even more competitive right now than it was in May. The big wave of sales that was expected after the stay at home order was lifted has happened, and a large portion of homes are selling at or above asking price.
Another difference between May and June is we now have more inventory coming on the market, so the volume of home sales is increasing. In May people weren't listing their homes because they did not want people coming into their homes for showings or open houses. That has started to lighten up a bit, with more people comfortable with listing in June versus May.
The market has become a strong sellers market due to not enough homes being listed. Many people who occupy their home are not wanting to list during coronavirus, and so the supply of homes for sale is very low. Demand hasn't changed nearly as much as supply, and therefore prices are going up with multiple offers on many listings.
With the coronavirus affecting the Raleigh-Durham area just like the rest of the country, several changes to our market have taken place. Withdrawn listings are up 700% according to the MLS (multiple listing service), and people are staying at home due to the stay at home order. In-person showings are only allowed on vacant homes in Durham (but are allowed for all types of occupancy everywhere else - Raleigh, Chapel Hill, Cary, etc).
It's not all bad news however, as when I look through the recently listed homes a large portion are still selling quickly, especially in the sub 400k market. People are still needing to move and still purchasing homes. Even in Durham, where in person showings of occupied homes are not allowed, home buyers are using 3D virtual walk-through tours, or having their agent facetime them. They then place an offer on a house without actually seeing it in person using a sight-unseen addendum that was created.
The low days on market count ("homes selling quickly") that we are still experiencing is due to the low level of inventory in the market. Before coronavirus we had levels of inventory of around 2 months. Anything below 3 months can described as a strong sellers market, and with home sellers taking their homes off the market right now inventory levels have not increased. With supply so low, it would take almost zero demand to move us from a sellers market to a neutral market.
I have clients on both the buying and selling side who are waiting until the stay at home order is lifted to move forward. Once that happens, we should see a huge wave of activity and sales. Even though we are still in sellers market, the amount / pace of sales is slower than normal right now. That should change once the stay at home order is lifted and everyone who has been waiting starts to look at homes again.