With everything that is going on, you might be wondering how the housing market is being impacted. It is a good question to have, especially if you are thinking about selling or buying real estate any time soon. So, as you might assume–folks have slowed down their desire to buy or sell due to COVID-19. According to Lawrence Yun, National Association of REALTORS® Chief Economist, “In the latest flash survey, 11% of REALTORS® indicated a reduction in buyer traffic and 7% are reporting lower seller traffic when asked directly about the coronavirus impact on the market.”
Looking back before the outbreak occurred, it was widely a seller’s market. This means that demand for houses is higher than the supply of houses available–which leads to higher prices for the sellers’ properties and not as much room for negotiation for the buyers (there are a number of other factors, but this is the gist of it).
Fast forward to now when things have slowed down. It is evident that it is still a seller’s market. With even less of an increase in the number of homes becoming available, there is even more competition for homes. Although this is true, it is also important to note that there are fewer buyers–so homes may be sitting longer than anticipated.
Currently, it is essential to remember that there are still players in the market right now–buyers and sellers. Real estate has not come to a complete halt, and it will not get to that point. Real estate has been noted as an essential service during this time and those agents that are willing and able to continue working for clients are still doing so.
Looking into the future, I predict that as we continue to “flatten the curve” we will begin to see an increase in homes popping up available on the market and an influx of buyers as well. You see, this virus is keeping many folks in their homes. As soon as people begin getting more comfortable, I think the market will boom (for both buyers and sellers) due to the cooped up supply and demand. Buyers will need to act fast. Sellers will want to be one of the first on the market when this happens. People have been waiting, on both sides, and will be ready to go!
If you want to prepare for when the time comes to sell or buy, contact one of our agents today. Things are happening and people are preparing, do not get left behind!