How will the COVID-19 Pandemic impact home prices?
Nobody has a crystal ball to know for sure. Here is some insight:
Total months supply is a huge factor in the #health of a #housingmarket. 6-7 months is a neutral market, anything over favors #buyersmarket and anything under is a #sellersmarket. The National Association of REALTORS? just revealed nationally we are at 3.4 months of inventory - #Colorado is much lower...somewhere around 2.0 months of inventory.
Given the recent #statistics I am tracking, inventory for April is expected to be even lower. This #supply and #demand pressure bodes well for home prices, but don't take my word for it....
“Supported by our analysis of home price dynamics through cycles and other periods of economic and housing disruption, we expect home price appreciation to decelerate from current levels in 2020, though easily remain in positive territory year over year given the beneficial factors of record-low inventories & a historically-low interest rate environment.” - Ivy Zelman, President, Zelman and Associates
“Supported by our analysis of home price dynamics through cycles and other periods of economic and housing disruption, we expect home price appreciation to decelerate from current levels in 2020, though easily remain in positive territory year over year given the beneficial factors of record-low inventories & a historically-low interest rate environment.” - Freddie Mac
“The housing supply remains at historically low levels, so house price growth is likely to slow, but it’s unlikely to go negative.” - Marc Fleming, Chief Economist, First American
"More temporary interruptions to home sales should be expected in the next couple of months, though home prices will still likely rise" - Lawrence Yun, Chief Economist, NAR