(AmericanProsperity.com) – Despite the COVID-19 pandemic and over 30 million people out of work, median home list prices have actually increased. They went up 1.6% annually for the week ending April 25, when compared to listings in the same period last year.
Many real estate experts predicted prices would level out or fall since demand dropped. However, homeowners are reluctant to lower what they’re asking at this point. In fact, only 4% were willing to cut their asking price in hopes of selling. In February, home prices were increasing before states locked down their economies.
— Revised Capital (@revisedcapital) May 5, 2020
The median home price in April was $324,900. At the start of the pandemic, in mid-March, average listing prices sat around $320,000. However, despite the 1.6% increase, the number of homes available for sale declined by 43.1% since the pandemic swept the country. Many sellers pulled their listings or chose not to list their homes over health or financial concerns. According to the Mortgage Bankers Association, mortgage applications are down 20% when compared to last year.
Still, experts find hope even with uncertainty in the economy, chronic unemployment looming, and a potential wave of foreclosures. They predict, after the emergency declaration ends, prices will come down. Until then, now may not be the best time to go real estate shopping.
~Here’s to Your Prosperity!
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