UA studies COVID-19 impact on home sales

UA research study about COVID-19's impact on home sales

TUSCALOOSA, Ala. (WBRC) - Usually this time of year many realtors would be offering Parade of Homes events for those looking to buy a house, but that has changed a bit since the pandemic.

More and more people are choosing virtual options to look for a house and the numbers show a decline in Home sales compared to last year.

Closed home sales data from April shows a 9% decline in Alabama compared to last year, according to the Alabama Center for Real Estate in the Culverhouse College of Business. In addition to lower sales, UA researchers found the number of properties listed for sale, or inventory, declined 16% from 2019.

They believe sales activity for the foreseeable future when compared to the last year is likely to decline due to the growing economic impact of the pandemic. In Tuscaloosa, home sales were down 8% and in Birmingham was down 14% in April.

However home price growth stayed the same even with the pandemic. So all though the buying process has changed slightly since COVID-19, closing on a house is still business as usual.

“Now you have the extra detail of hey we got to make sure it’s sanitized , we want to make sure germs aren’t passing on in the house during showings. If you’re considering buying right now mortgage rates are considerably low. It’s all about the person and their circumstance,” said Stuart Norton, Alabama Center for Real Estate Coordinator.

Three metro cities in Alabama one of them being Mobile, saw in increase in home sales in April 2020 according to the data. Here is the link to the statewide report for April.

Copyright 2020 WBRC. All rights reserved.