Friday, May 1, 2020

COVID19 and real estate


Hello friends,
While it might be surprising to many, banks are being inundated with applications for new mortgages.  This is largely due to the fact that real estate markets, with the notable exception of the 2008 recession, are generally minimally effected by recessions or extraordinary events such as COVID19.  Real estate prices move one way or the other based on the interplay between supply and demand.  And right now, even though March 2020 closings are about 25% below March 2019 closings, prices are still remaining stable and in certain areas actually increasing!  How can this be?  Well, as it turns out many sellers and would be sellers are keeping their homes off the market because they’re concluding that this is not a good time to sell.  The net result of this hesitance to sell now is causing a noticeable decrease in the amount of available housing inventories, and that places upward pressure on prices.


So if you’ve been considering making a move, please know that’s it’s still indeed possible.

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