A question I answer on almost a daily basis at this point is, “What is going to happen to the housing market this summer?” Up until last week, I could only express to people what I was seeing anecdotally in my own experience. That is, that many buyers and sellers are delaying their decisions to purchase or sell due to COVID-19. They are not dropping out of the market.
On April 30, 2020, the National Association of Realtors released a random survey of its 90,000+ members that confirms what I’ve been saying to people for weeks. Here’s a link to the document.
Here are some of its most notable findings:
- 43% of buyers indicate that they are delaying their home search for a couple of months but not dropping out of the market, 12% indicate no change in buying behavior. 9% indicated they would continue by relying on technology only to shop for homes (3-D tours, virtual showings)
- 51% of sellers indicated that they are delaying their listing for a couple of months but not dropping out of the market. 15% indicated no change in behavior. 17% indicated they would continue the process relying on technology only to sell their home.
- 36% of buyers did not expect a change in home prices due to COVID-19. 18% of buyers thought they would be affected by less than 5%.
- 76% of sellers indicated they would not be reducing their price in order to attract buyers. 15% of sellers indicated they would consider reducing their price by less 5%.
What I take from these numbers is that, although we experienced a fall off of about 1/3 of normal market activity in Minnesota from April 2019, that this fall off is not due to consumers dropping out of the market. Rather, we can expect these additional buyers and sellers to return to the market in the summer and fall of this year. Furthermore, we will likely see prices stay the same or increase during that time frame. All of this makes the market look very good in the months to come!