Housing Market Update: March 31, 2020
With the government continuing to show extreme amounts of support towards our economy and our citizens who have been heavily impacted by Covid-19, we're starting to see light at the end of the tunnel. More in the form of confidence in the market. We know as confidence slips, investors start to sell their holdings, causing the stock market to dip. As the stock market maintains its volatility, real estate continues to show stability. Although right now we're seeing heavy sell offs in the stock market due to seeing more news about layoffs, real estate continues to lag behind the fray. One of our biggest economic lead indicators is Supply and Demand. Currently we're seeing supply being impacted as sellers are understandably slow to bring their homes(inventory) to the marketplace. Seller's who are still participating in this market are finding less competition as they hold out for motivated buyers in this market. With this, we continue to see buyers taking this moment to still purchase property with less competition in the market as some buyers hold off.
Although demand has dropped in recent weeks, it has not been enough to increase supply considerably enough to drop prices. Appreciation as well as depreciation in prices happens slowly. We typically won't see this until we see more like 10-12 months of available homes for sale(inventory). We would have to maintain this for enough time for buyers to have enough options, to effectively shift to a buyer's market and see prices start to subside. Obviously we have a long ways to go as we continue to see housing as a safe and sound asset even in these times. For more information on what's happening in the market, browse our other blogs. Feel free to share this. Finally let us know what questions you have about buying, selling, and investing in real estate.