Why Home Prices are Rising During a Pandemic
You would think the opposite, right? You would think that since many states have stay at home orders, air travel is considered frowned upon, people are postponing moves, let alone a global pandemic, home prices would drop. While sales themselves have dropped, 8.5% in March according to the Wall Street Journal, prices have not. So why is that?
When the coronavirus pandemic first hit the United States, the demand for buying and selling houses decreased, but so did supply. Buyers wanted to stay put and not buy a new house until the pandemic slows down. Because of this, sellers took their homes of the market for the time being. However, some cities and states haven't been hit as hard. Comparing this pandemic to the last time our economy had a major hit from 2007-2009, sellers aren't being forced to drop their home prices drastically. In fact, only 4% of sellers dropped their prices. This is because many are still finacially stable.
So, don't expect to get a major deal on your dream home right now. Prices are only going to increase once this is over. But, don't get discouraged just yet! Deals are everywhere no matter what.