Mortgage FAQs: Why Haven’t Home Price Come Down During the Current Economic Situation?
"WE’VE BEEN LOOKING AT HOMES SINCE BEFORE THE CORONAVIRUS CRISIS STARTED. WE’VE NOTICED THAT HOME PRICES HAVEN’T COME DOWN—EVEN WITH THE CURRENT ECONOMIC SITUATION. WHY HAVEN’T THEY FALLEN?"
First of all, keep in mind that all real estate is indeed local and market conditions (as well as economic conditions) can vary widely in different areas. That being said, a large number of markets are not seeing signs of price depreciation. As a matter of fact, home prices have been steady throughout the COVID-19 crisis and in many cases, prices have actually shown a small increase.
According to research by Realtor.com, median listing prices have increased anywhere from 3.1 percent to 4.5 percent since the first two weeks of March (pre-COVID-19). Why? The answer can be found in the basic law of supply and demand.
So far in June, the number of homes for sale nationally has been down between 25 and 27 percent compared to June of last year, according to Realtor.com. With this lack of inventory, many sellers are feeling that they are in the driver’s seat and don’t need to lower their asking price. However, we may see a shift to more inventory—and more affordable homes for sale—later in the summer in areas that are seeing fewer and fewer coronavirus cases.
As always, to get the most up-to-date info on the market in your particular area—including how home prices are trending—talk to your real estate agent.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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