Are home prices dropping because of the pandemic? In this video we’ll look at how the experts say the housing market will react to the pandemic. Don’t just listen to social media talking heads, hear what the experts are saying. And download our quarterly market update with detailed article that compares the current market to the 2008 housing bubble. https://victoriasellssarasota.com/market-update-2/
For a detailed article on this subject read my article: https://victoriasellssarasota.com/real-estate-blog/housing-market-price-cuts/
There certainly isn’t a shortage of social media doom-sayers that liken the current market to the housing bubble of 2008. Do we see home prices dropping since the stay-at-home order was put in place? How is the local Sarasota Homes market reacting – are home prices dropping?
Don’t listen to social media talking heads – hear what the experts are saying. The truth is this is not 2008 all over again. Far from it. Yes, we are experiencing a slowdown, and many of those of us working in Real Estate believe the housing market will re-surge fairly quickly once the crisis begins to pass.
The National Home Price Index from S&P CoreLogic Case-Shiller states that home prices have continued to rise at a modest level:
“Importantly, today’s report covers real estate transactions closed during the month of February, and shows no signs of any adverse effect from the governmental suppression of economic activity in response to the COVID-19 pandemic. As much of the U.S. economy was shuttered in March, next month’s data may begin to reflect the impact of these policies on the housing market.”
Fannie Mae’s latest Housing Forecast (April) predicts home prices will flatten through 2021, though they see prices rising slightly this summer and lowering in the fourth quarter. According to the report, the median home price was $265,000 in the first quarter of 2020 and will return to that value next year.
Freddie Mac in their April 2020 Economic and Housing Market Outlook has home prices flattening for the rest of 2020 and then slowly rising in the second quarter of 2021. But they believe the number of homes sold will only be down a little from last year.
Here’s what NAR’s chief economist Lawrence Yun had to say:
“Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months,” and “The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”
If you are selling your home:
If it’s on the market, leave it on the market and don’t jump to reduce the price. If you are thinking of selling, this may be a good time to list depending on your local market and your unique situation.
If you are buying a home:
Continue looking but don’t expect to pick up your dream home for a song. If you do find the perfect home, buy it at fair market value. Prices aren’t going to drop greatly.
Get our latest market update with details comparing the housing bubble of 2008 and today’s market:
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▬ Relevant Links ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Waiting for Price Cuts – read this:
Fannie Mae April Forecast:
Freddie Mac Outlook:
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