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 nationwide filed initial unemployment claims according to the United States Department of Labor, including nearly 600,000 claims filed in the State of New Jersey alone. In the face of these challenging times, real estate activity in April slowed significantly.
• Single Family Closed Sales were down 16.8% to 5,412.
• Townhouse-Condo Closed Sales were down 32.4% to 1,435.
• Adult Communities Closed Sales were down 19.0% to 485.
• Single Family Median Sales Price increased 12.7% to $355,000.
• Townhouse-Condo Median Sales Price increased 11.5% to $290,000.
• Adult Communities Median Sales Price increased 1.9% to $214,000.
While the effect of COVID-19 does vary across the state, 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.