How will the pandemic affect home values? Buyers are hoping for price reductions due to economic strain. Like any item, pricing is all based on supply and demand. The more supply, the less demand. The less supply, the more more demand. The housing market is no different.
In residential real estate there is a measurement to make the determination of price. It is called months supply of inventory. In a normal market there would be 6-7 months of inventory. Anything over 7 months is a buyers market. Anything under 6 months would be a seller’s market. Prices go up when it is a seller’s market and down when it is a buyer’s market.
In March there was a strong seller’s market. The supply is at 3 months. Now, buyer demand has decreased during the pandemic. The number of homes on the market has also decreased. The National Association of Realtors said that we currently have 3.4 months of inventory. Which means, it is still a seller’s market and home values should maintain their value during this time.
Even though the economy has been placed on pause, it appears home prices will remain steady throughout the pandemic. Call/text me at 931-237-1417 to discuss what this means for you.