So how does all of this uncertainty impact the housing market?
Short Term: Despite sellers still needing to sell, inventory will decrease sharply. Listings are still trickling onto the market, but nowhere near the number it would've been had our lives not been turned upside down. While many buyers are in "wait and see what happens" mode, serious ones and those who have been "waiting for the market to go down" remain undeterred and can expect less competition with a slight corona discount.
Long Term: We're going to see a deep recession, but most likely the shortest one in history, with the economy predicted to start recovering towards the end of summer. Prior pandemics showed that while the number of home sales dropped dramatically during an outbreak, home prices only decreased slightly. The pace at which prices were rising will most likely slow down, but nothing like 2008 prices as that was caused by oversupply and we still very much have a housing shortage. When all of this is said and done, the backlog of inventory combined with pent-up demand from buyers will stabilize the market again.
Buuut, disclaimer: things are changing so quickly everyday that this may all be different even by next week. The news is difficult to keep up with these days!
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