Our last call focused, of course, on real estate sales during the pandemic so far. Conditions have been very different at various times throughout the last few months, but all of us have faced lockdowns or restrictions that have affected the way we do business. And, as it turns out, we've all adjusted to the new normal. While not all of us are back to work physically, real estate is changing hands just about everywhere.
One metric that has changed is the calendar. Usually, 60% of listings come between April 1st and August 1st. This year, April and May saw very little in the way of listing activity. The summer seems to be making up for that, as the "spring" season is still going on. Most of the drop in sales in the second quarter turned out to be from lack of inventory, as much as from the virus. Sales in many places jumped just as the coronavirus first started spreading, and then dipped way down for some period of time, finally beginning to rise and then approach normalcy. Many areas saw closings up in the first quarter from 2019, then down 20-30% in the second quarter, with nothing left to sell by now. Who could have predicted that?
New York City, which had somewhat of an exodus during its COVID peak, was another story. Closings there were down 67% in the second quarter. As I've reported before, 10,000 people changed their addresses to Connecticut in that time period, meaning that Connecticut could find itself well above the national curve for the rest of the year. Again, however, inventory becomes the big question mark. If we don't have anything to sell, there won't be sales. Will sellers decide that this is their moment? Some towns are finding that to be true, while others have experienced different results in varying price ranges. Depending upon the location, the high end of the market is either very strong, or less strong than the rest of the ranges. Only time will tell whether more listings will change that picture. There is clearly every indication that Connecticut will see a bump from New York, for either primary residences, or seasonal escapes.
Mortgage rates dipped below 3% for the first time in recent memory this month, adding fuel to the fire for buyers. If they can buy, we think they will. Open space is important, as are commuting possibilities; both of these factors help Greater New Haven. Occasional commuting with lots of telecommuting put us well within the range for NYC-based employees. Bidding wars are common, and listings are moving quickly.
Our advice is, for both buyers and sellers, to seize the moment. Move while you can, sell while you can, and enjoy being outside while you can. If there is one thing the pandemic has reminded us, it's that life is too short not to live it to the fullest.
