Despite the COVID-19 pandemic, buyers are still buying and sellers are still selling in our market.
How have the COVID-19 pandemic and subsequent stay-at-home ordinances (which have been extended until the end of May) affected the real estate market?
Real estate has been deemed an essential service, and obviously, the health and safety of our clients is our top priority. We can still show homes by appointment only and list them, and while showing homes, we do our utmost to practice social distancing. We can’t, however, host open houses or have more than five people inside a house at the same time.
Don’t buy into the myth that homes aren’t selling. From April 1 to April 17, 727 new listings hit the market in the Greater Milwaukee area, and 594 homes went under contract. Buyers are still buying, too—especially with interest rates this low. Home sales last March increased by 8% to 10% in most areas compared to March 2019. This makes now a good time to sell.
Prices haven’t dropped, either. If anything, we’re seeing multiple offers for homes over their asking price. We just sold a home in the Sussex/Lisbon area that generated four offers, all of which were over asking price.
Will they eventually go down? Considering everything that’s happening with the economy. If I were a gambling man, I’d say, yes, eventually they will go down, given everything that’s happening with the economy. Everything is based on supply and demand. Right now, supply is low and demand is high, but after the stay-at-home ordinances are lifted, there will be a lot more people listing their homes. When supply rises faster than the demand, that’s when prices drop, and I predict this drop to happen in three to six months. How far prices will drop is anyone’s guess.
If you’re ready to sell or have questions about our market, don’t hesitate to reach out to me. My team and I would love to help you.