A few months back, experts predicted that 2020 would see a “historic low level” of housing inventory. In just a few short weeks, the corona virus outbreak has impacted many aspects of our everyday life. Here comes the data for March and those projections may ring true.
Events and conventions have been cancelled and postponed. Public fear of the unknown, along with an abundance of misinformation, has made supplies of personal and healthcare items unavailable, including hand sanitizer, face masks and toilet paper.
According Forbes magazine, housing supply is rapidly declining in the wake of the COVID-19 outbreak.
In the week ending March 29, more than 28,000 sellers took their homes off the market a 148% jump over this time last year. In total, 4% of all homes on the market were de-listed, about twice the normal rate.
It seems sellers are worried about the exposure that listing their homes might come with.
Sellers in Chicago, Los Angeles and Philadelphia were especially prone to pullbacks. In all three, 6% of all active listings were taken off the market at the end of February while Dallas and Denver saw 5% of all listings removed as Forbes reports further.
According to Realtor.com, new sellers are down the most in places like Phoenix (-42%), Milwaukee (-36.2%) and San Diego (-33.4%).
To make matters worse, new sellers aren’t coming to the table either, data shows a 33% drop in new listings last week and even double that amount in some markets, Detroit and Philadelphia, respectively.
To sum it up the impacts of the coronavirus pandemic are rippling through to nearly every segment of the economy, and the housing market is no exception. The outbreak has driven sudden changes in behaviour among homebuyers and sellers in the United States, which now has more reported cases of COVID-19 than any other country in the world.
With 395,011 confirmed cases and a total of 12,754 deaths in the United States, as reported by the Centers for Disease Control and Prevention (CDC) it is understandable for home sellers to panic and flee the market, but the question now is, until when and how can we mitigate that panic felt by our home sellers and buyers?
COVID-19 has changed everything, and new details every day alter what the landscape for what home sellers could face because of the pandemic. While studies of previous pandemics suggest that home prices won’t drop all that much, the economic impact of COVID-19 remains unknown yet people remain optimistic.
What do you think?
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About the writer: Shaura Cuyan writes about all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication, taking up her Masters in Development Communication.