With the pandemic throwing the real estate market a curveball, it is easy to think about now being a good time to buy. However, as the inventory of homes for sale has shrunk faster than actual sales have slowed, it is just as easy to make a case for now being a good time to sell.
As of now, those hoping the coronavirus-fueled recession will bring bargain-basement real estate prices are likely out of luck. Even with a battered economy and the highest unemployment since the Great Depression, home listing prices still rose 3.1% year over year last week, according to the most recent realtor.com data for the seven days ending May 23.
Of course, price point matters. The higher price points have seen lower transaction volume, so the luxury market is still skewing towards a buyer’s market. However, regardless of the price point, many sellers pulled their properties off the market or held off on listing as they did not want strangers walking through their homes in the middle of a public health disaster. When there are more buyers competing for a limited supply of properties, prices tend to go up.
While more supply could help prices to eventually soften, record-low mortgage interest rates have given them a little more room to rise. They can help alleviate some of the financial pressure of those higher prices as they can help to reduce the size of homeowners’ monthly housing payments.
This market can still go any number of ways in the coming months, and nobody has a crystal ball. As always, I recommend that you solicit the advice of a real estate professional in your area to find out your next move whether you are considering buying or selling.