A recent WSJ article discussed the impact of the coronavirus pandemic on the housing market and provided one of the best snapshots I’ve come across. The housing market is seeing prices rising higher and higher despite the shrinking economy. In fact, the National Association of Realtors is reporting that the median price rose 8% to $280,600 in March. The article notes that while buyer demand has softened due to the virus, the supply of homes on the market is contracting even faster, serving to maintain a sense of demand. As of late last month, total listings hit a 5 year low while the median price is up 1%.
We’re also seeing home prices remain stable because sellers aren’t in a rush to slash prices. Surveys show sellers believe homes aren’t moving because buyers have not yet been able to view them in person. I’m predicting that sellers will wait for an ease in stay-at-home orders before making moves to reconsider pricing strategy. The truth is that the housing market has been in a state of undersupply for years, and sellers are right to expect that will only get worse, making demand for their property skyrocket. Buyers who are expecting bargains may find a much more stable market than they expect, with multiple offers on every listing.
My team is continuing to monitor the current state of the market to provide clients with the most timely guidance as they consider their next real estate move. Reach out to benefit from our expertise and make use our Market Report features to see the latest sales and homes under contract in Coral Gables, Coconut Grove, and Pinecrest.