Coronavirus Impact on Real Estate Market

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Prudence
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Coronavirus Impact on Real Estate Market

Post by Prudence »

We are considering a decision to sell our house and close in September 2020. We live in close in Montgomery County MD. This has always been a strong market for SF homes like ours. Homes sell quickly at or above list price. If we sell our house, I think we would take a hit due to the coronavirus impact on the market. We could possibly lose 10% (or worse) on selling price, compared to a "normal" market in an economy that is doing ok. Here is a major constraint: if we take a hit on the sale of our home in September, we will not make it up on the other side when we move to the new living situation. So, it is a lose-lose situation in that regard. Comments please.
Trader Joe
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Re: Coronavirus Impact on Real Estate Market

Post by Trader Joe »

Prudence wrote: Sun Apr 05, 2020 5:39 pm We are considering a decision to sell our house and close in September 2020. We live in close in Montgomery County MD. This has always been a strong market for SF homes like ours. Homes sell quickly at or above list price. If we sell our house, I think we would take a hit due to the coronavirus impact on the market. We could possibly lose 10% (or worse) on selling price, compared to a "normal" market in an economy that is doing ok. Here is a major constraint: if we take a hit on the sale of our home in September, we will not make it up on the other side when we move to the new living situation. So, it is a lose-lose situation in that regard. Comments please.
I think your logic is incorrect. If the market is down on selling, the same would apply to buying. Both ends.

I am sure that the market will prevail on both ends.
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Sandtrap
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Re: Coronavirus Impact on Real Estate Market

Post by Sandtrap »

Prudence wrote: Sun Apr 05, 2020 5:39 pm We are considering a decision to sell our house and close in September 2020. We live in close in Montgomery County MD. This has always been a strong market for SF homes like ours. Homes sell quickly at or above list price. If we sell our house, I think we would take a hit due to the coronavirus impact on the market. We could possibly lose 10% (or worse) on selling price, compared to a "normal" market in an economy that is doing ok. Here is a major constraint: if we take a hit on the sale of our home in September, we will not make it up on the other side when we move to the new living situation. So, it is a lose-lose situation in that regard. Comments please.
Can you be assured that those area specific prices will fall by/in a September listing?
Is your area of purchase in the same place?

Even with the current COVID19 and economic climate, there are national R/E pricing trends, then regional, then area specific.

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Topic Author
Prudence
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Re: Coronavirus Impact on Real Estate Market

Post by Prudence »

It's a tricky situation with limited data. There are many reports of cancelled open houses and sellers pulling their homes off the market or suspending plans. Also, a reduction of buyers actively looking. So, the market seems to be on pause. These things are common sense. Massive unemployment and recession. Some "experts" say the impact will be limited because both supply and demand have decreased, so, prices can remain stable. If I had planned to sell this year, I would likely delay until the economic impacts of coronavirus had resolved.
DiMAn0684
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Re: Coronavirus Impact on Real Estate Market

Post by DiMAn0684 »

Prudence wrote: Mon Apr 06, 2020 7:44 am It's a tricky situation with limited data. There are many reports of cancelled open houses and sellers pulling their homes off the market or suspending plans. Also, a reduction of buyers actively looking. So, the market seems to be on pause. These things are common sense. Massive unemployment and recession. Some "experts" say the impact will be limited because both supply and demand have decreased, so, prices can remain stable. If I had planned to sell this year, I would likely delay until the economic impacts of coronavirus had resolved.
I am most definitely not an expert, but I imagine the 'supply' part might start growing because some sellers will be forced to do so by their financial situation.
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fredflinstone
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Re: Coronavirus Impact on Real Estate Market

Post by fredflinstone »

No open houses this weekend here in Bedrock. Last year there were maybe 10 in my neighborhood this time of year.

But there are quite a few houses for sale here. They are priced (in my opinion) pretty aggressively, as if we are not in a recession. It will be interesting to see if there are any takers at these prices. My guess is that prices will come down at least 5 percent, maybe more.
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