Real estate in times of Covid

All things considered, it has been an incredibly strong market for residential real estate sales in 2020. The spring started strong but was shut down along with everything else in March when the virus leapt the oceans and appeared in great numbers on the US coasts. Home sales were considered an essential service, but the apprehension of allowing strangers into sellers’ homes for showings slowed down the process.

This data from Northstar MLS shows the dip in April and then the take off of activity starting in June.

Issues that seemed to be on buyers minds when they came through open houses were 1. room for home offices 2. new flexibility in distance to job location 3. downsizing out of larger homes to avoid maintenance concerns. This broad range of interests led to almost all types of properties being snatched up, often in competitive bidding. Which has led to a sharp decline in properties available for sale.

In almost all markets, except the downtown Minneapolis condo market which is up 21.3%.

I think there is little dispute that Covid has dampened the amenities which a downtown offers. The lack of night life and restaurants, the lack of need to be blocks from work or near light rail for a quick trip to the airport. By displacing the relative value that residents place on these features versus a whole host of other variables that go into a home purchase decision (including square footage, proximity to family and so on), more owners are exiting the downtown community than joining it.

Nailing down the market prices on each of these amenities one-by-one would take data that is not readily available. Data sets for the performance of public sector goods would have to be statistically spun out to reveal levels of significance. An analysis of prices of these and other amenities which overlap through a variety locations would provide an opportunity for index setting. Due to the extraordinary living conditions in 2020, there is an opportunity to obtain counter factual data for many core neighborhood utilities. It is a unique opportunity.

A walk a day..

According to the Mayo Clinic: regular brisk walking can help you:

  • Maintain a healthy weight
  • Prevent or manage various conditions, including heart disease, high blood pressure and type 2 diabetes
  • Strengthen your bones and muscles
  • Improve your mood
  • Improve your balance and coordination

The faster, farther and more frequently you walk, the greater the benefits.

After a section about technique and goals and progress, Mayo says, ‘Starting a walking program takes initiative. Sticking with it takes commitment.’ You see this costless effort toward your health takes work. Work because if you don’t do it you will lose out.

Scenery and wildlife keep me motivated.

Pop quote!

To add to the fun, there will be a prize for identifying the location of this photo as well. C’mon, it is easy! Post in comments.

“The notion that there are many values, and that they are incompatible; the whole notion of plurality, of inexhaustibility, of the imperfection of all human answers and arrangements; the notion that no single answer which claims to be perfect and true, whether in art or in life, can in principle be perfect or true – all this we owe to the romantics.”

Wood Ducks

I often stop at local parks, especially when I’m in an unfamiliar part of town. First off it is an incentive to maintain a regular walking regime. And you can almost always glean some insights into a community from its parks and trail system.

Yesterday I stopped at one which featured Nature Center in its name. Yet there was no building next to the forty by forty spread of asphalt off a deadend road, perhaps a half-mile from the heavily used I694 loop around the cities. Only the entrance sign confirmed I was in the right spot.

The trail led under a gorgeous canopy tall oak trees. Through all the dead fallen wood you could see a pond down to the left covered in a thick coat of pea green.

The signage was ambitious, from the greeting sign and then a series of signs denoting stations along the walk, pointing out the flora and fauna along the circular path around the pond. They were faded, and the plastic coverings cracked and damaged.

As the path descended down toward the water the noise of ducks alerted one to a large grouping of fowl. I first spotted a nice looking mallard. Then, hacking through the brambles and low brush to get a better look, a gaggle of no less than thirty wood ducks came into view.

If you’re a bird watcher seeing a glimpse of just a pair of these birds, with their exotically detailed plumage, is exciting. This site caught me spellbound.

My first impression of this park led me to feel sympathetic for the folks who must have spent so much time getting this 24 acre green space established. How disappointed they would be by the overgrowth and neglected beamed steps cut into the hill bank, washout at points here and there.

But I’ve changed my mind. Those folks, having invested work into this vision would probably be delighted not disappointed. For here was a habitat in the middle of a three and a half million people metro, where families of wood ducks floated contentedly on a pond.

Reminder to self: don’t be too quick to judge someone else’s point-of-view.