The lack of the newly formed liquidity that took place in the aftermath of the COVID-19 as well as during the first out of the virus, might force many property owners to list their homes at a discount price. With the current rising prices, homebuyers could be thrilled to see the market value of homes going down, which is likely to happen with COVID-19 wrecking the US economy.
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Weiss Analytics Reports Potential Decline in Home Prices
Weiss Analytics released the latest report showing that the newly listed homes are trading at lower prices. That case scenario might mean that home sellers might be driven to sell their properties urgently with the COVID-19 effects hitting the economy. Compared to pre-COVID-19 home listings, the newly listed homes in the US are selling at 25% lower prices according to the report. As per historic, lower home prices might mean a crash of the housing market.
Houses Between Prices 200,000$ and 600,000$ on Discount
According to Weiss Analytics’ report around 30% of newly listed homes are selling at a discount of 6.3% when compared to prices in February. At the same time, 37% of houses that were prices at 600,000$ in the same month are selling at a discount of 7.7%. Besides, as reported by Redfin, a real estate listing firm, the last month’s home sales have had a radical dip by over 27%. Zillow reports a sharp decline for high-end homes, noting a 47% drop in the last month.
April Brought Inventory Shortcomings and Plunging Listings
Redfin also reported declines in housing inventory in April at -21%. At the same time, home listings in April have plunged by 41% on an annual basis. Even though there were setbacks that could indicate that the housing market is crashing, the median sale home price is still in the positive zone with a rise of 5%.
