By Colin R,. O'Leary
The spring time is typically the busiest time of year for the real estate market. It's the time of the year when the most homes are listed. Spring is the time of the year when the most open houses are typically help. It's the time of the year when the most homes go into contract. This year is different though. The coronavirus pandemic is currently hammering the economy. It's upended the real estate market as well.
The good thing is that deals are still happening. The real estate market has not been ground to a complete halt. The lockdown is slowly being lifted in many parts of the country. Many homeowners who were planning sell this spring have held back from listing their properties. This is leaving little supply for the buyers who are in the market looking for homes right now. Surprisingly, home values are being positively affected by the pandemic in many markets, at least in the short term.
Real estate is very hyper local. No two markets are the same. Real estate is all about supply and demand as well. Even with the pandemic there is still a lot of demand for homes in many markets across the country. There is a shortage of available homes in a lot of these markets. To make things worse, potential sellers are holding back from listing properties because of the ongoing concerns over the coronavirus pandemic. There was already a shortage of homes available in many markets before the pandemic even began. Now there is even less inventory available. This is causing home values to rise in many places. This is good news for many homeowners. For buyers on the other hand, they may have to pay more. The median home price in the United States rose 8% to $280,600 in March year-over-year, according to the National Association of Realtors.
There are fewer deals happening right now. The coronavirus pandemic has caused the total number of homes sold to decline. Home sales declined by 8.5% in March compared to the previous month. The shuttering of our economy has made it difficult for buyers to get access to properties. Many states are still not allowing in-person showings. Most buyers are unwilling to make offers sight-unseen even though agents are offering virtual showings. Homes listed just before the pandemic are lingering on the market.
The housing market in many states was already short on sales inventory before the pandemic even began. It may get worse in the short term as fearful sellers decide to hold back because they don't want strangers in their homes. There will likely be strong demand for homes in many markets as buyers rethink their living situations. Each market is going to be affected in different ways from the coronavirus pandemic. Only time will tell how the real estate market is affected in the long term.
Let me know your thoughts about the current state of the real estate market in the comments below