One in two Realtors surveyed early this week said home buyer interest has dipped in light of the COVID-19 outbreak, tripling from last week when only 16% said the same. What a difference a week makes.
According to the National Association of Realtors survey, 69% of Realtors said there’s no change in the number of homes on the market during the pandemic, down from 87% the week prior.
“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” said NAR Chief Economist, Dr. Lawrence Yun.
“With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic ‘quarantine’ is lifted, and it’s critical that supply is sufficient to meet pent-up demand.”
The survey also asked members about the stock market, mortgage interest rates, and consumer behaviors. Fully 45% said the stock market correction and lower mortgage rates balance out, not impacting buyer behavior.
Only 40% said home sellers haven’t changed how their home is viewed while on the market, compared to nearly 80% just one week ago.
The majority of sellers have decided not to make a change in their listing status, but this week saw an increase in home sellers pulling their listing from the market and opting to refinance instead.
Additionally, ShowingTime has reported a major drop in real estate showings compared to this time last year:
Every professional on the planet right now is wondering what’s next, and the answer depends exclusively on how quickly we can get a handle on COVID-19. Realtors and brokers should keep a finger on the pulse of the shifting economic data – it’s the only way to keep your eyes on the road in this fog of uncertainty.
One of the best examples we’ve seen of a practitioner offering detailed information to consumers during this crisis comes from Cynthia Fedor in Austin, Texas – review her recent email to shape your own future efforts.