In-Person Showing Resume April 26 – How will you know if prices are going to drop?
Please click above to watch my video update on how Covid is impacting NOCO real estate. Were excited to resume in-person showings once the stay at home order expires on Sunday, 26th.
A lot of folks are hoping that Covid will bring real estate prices down and we certainly understand that desire. You may have noticed that when reading headlines about the real estate market there’s a lot of ambiguous statements. Things like, “There’s a black cloud over the real estate market” or “Home sales dropped 8%” (not prices). These headlines and the information within are basically useless.
The only thing you need to pay attention to is inventory levels. The only thing that will bring prices down significantly is a massive increase in the supply of available homes. We do think inventory levels will increase over their current levels. But, the increase will have to be huge to offset the current lack of supply and bring prices down substantially. Also, it’s unlikely that foreclosures will contribute like they did in 2008 because the average us homeowner is sitting on $100k in equity and subprime mortgages are a thing of the past.
Please reach out if you’d like to talk shop and thanks as always for reading/watching!