Q&A with Maureen McEnearney Dunn and David Howell
WAS COVID THE BIGGEST STORY IN THE FIRST HALF OF 2020? It certainly was. The COVID pandemic has had far-reaching impact on almost every aspect daily life for everyone. As far as its effect on our regional real estate market, it stopped the spring market before it ever had a chance to get started. Just
six weeks into the shut-down, contract activity in the metro area was down 30%. Yet we were able to react quickly to these unprecedented circumstances to keep business going.
WITH PHYSICAL SHOWINGS PROHIBITED IN THE EARLY DAYS OF THE PANDEMIC, WHAT DID MCENEARNEY ASSOCIATES DO? We’re fortunate to have a dedicated, experienced group of agents and staff and we pivoted quickly to a much heavier emphasis on virtual showings and marketing, using every online tool available for our clients and to keep engagement at as high a level as possible. Along with the rest of the world, there were days with end-to-end zoom meetings, and everyone adapted
well. While we’re happy that activity has picked up in the phased reopenings, the wide use of these tools isn’t going to go away. No one knows when life will fully return to normal, and at this writing our physical offices are open only on a limited basis. But business continues, and this is how we plan to operate for the foreseeable future. It’s working.
HOW HAS THE MARKET CHANGED SINCE THE ONSET OF THE PANDEMIC? We go into detail in this Market Report, and the experience of the last six months is another reminder of just how different the various areas of the metro area are. Generally speaking, the outer suburban markets have fared better than more densely populated urban areas. Here’s one example: contract activity for condos in Washington, DC dropped over 30% from mid-
March through the end of June, while activity for detached homes in Loudoun County was off just 9%. Consumer behavior does seem to be changing in measurable ways, and while it isn’t a tidal wave by any means, more buyers are looking for elbow room.
ARE THERE ANY OTHER DIFFERENCES THAT STAND OUT? There are two other big stories that are corollaries to the COVID pandemic: the lack of inventory, and the uneven nature of the current market rebound. In our suburban markets, the number of homes on the market is off anywhere from 15% to 35% compared to this time last year, and that continues a trend that existed long before COVID. There simply aren’t as many sellers engaged in the market, and that has been magnified in the rebound. Buyers are returning to the market far more
rapidly than sellers, and that means that supply is very tight in much of the region. And as one might expect with so many of the COVID-related job losses concentrated in the service and hospitality sectors, the lower end of the real estate market has been impacted far more than the upper end. Contract activity for homes priced under $300,000 is off over 30% since midMarch, while homes priced over $750,000 are off 15%.
HAS THE REAL ESTATE MARKET ALREADY RECOVERED? We are very encouraged by the rebound in contract activity in June, and that has continued into July. Yet a rebound and a recovery are not the same things. There is still an enormous amount of uncertainty about the future path of the COVID virus, and it will take a long time to fully replace the jobs lost and to climb out of the deep economic hole that COVID has
produced. We have been proud members of the Washington, DC real estate community for 40 years and continue to believe that this is the best place to live and work in the world. We are realistic in knowing that we are a long way from a full recovery, but optimistic that we will recover here better than almost anywhere. 4
2020 FIRST HALF MARKET REPORT
