When the Coronavirus epidemic first made headlines, many homeowners selling their houses worried that the market would take a turn for the worse. It has been a few months, and rather than taking a dive as analysts predicted, the housing market remains just as steady as ever. In fact, the latest Economic Pulse survey from the National Association of Realtors (NAR) found that the market is holding steady. According to the data, 74% of real estate agents surveyed found that sellers have not dropped listing prices.
Now that states are beginning to open back up and reintegrate back to normalcy, it seems like homeowners can breathe a sigh of relief. But what factors played a role in helping home prices at the pre-COVID-19 outbreak rate?
Lawrence Yun, Chief Economist at NAR, explained:
“The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”
As Yun described, this inventory shortage and positive outlook are the main culprits behind the steady market. Even during quarantine recommendations, Utah remains one of the locations in high demand among home buyers.
Much of the state is now marked as “Yellow” or Low Risk, meaning that healthy residents and business owners can start reactivating. While there are still many limitations that individuals should adhere to, you can expect that the housing market will remain steady as it did throughout the year.
Homeowners looking to list their house should take advantage of the season. Not only are buyers looking for properties, but the current limited inventory makes available homes in high demand.
Getting your home listed early on will work to your advantage. Even after the initial outbreak of COVID-19, the nation experienced a severe supply shortage that increased home prices that remained on the market. In March, the number of homes for sale declined by 15.7% compared to March 2019. However, the national median listing price grew by 3.8%. These numbers show that sellers are entering a limited market with higher returns.
A recent Deseret News article notes that while the events of 2020 slowed Utah’s earlier housing boom, the average price of homes is still expected to rise but at a slower rate, according to James Wood, Ivory-Boyer senior fellow at the University of Utah’s Kem C. Gardner Policy Institute.
Right now, people are also low interest rate buyers who will stretch their budget and pay a premium. Since most businesses adapted for Covid-19 precautions, people can work from anywhere thanks to remote practices. You can expect many of these interested buyers to set their sights on Utah. Selling now could yield greater success thanks to Utah’s housing shortage and the market’s high demand.
Wood also explains that as the economy recovers in the later quarters of the year, buyers and sellers can expect increased returns. Fortunately, Utah is already faring better than the rest of the nation, according to the June 2020 Economic Summary released by the University of Utah’s Kem C. Gardner Policy Institute. It would be best if you took advantage while you still can.
If you’re ready to move forward with your listing, now is the time to do it. You can use these practices to help you win big during the current low-inventory market. Contact Woodley Real Estate today to learn more about our service offerings, including how we can guide you through the selling process.
