The effect the COVID-19 virus has had on the real estate industry is becoming old news. We expect there to be ups and downs on a daily basis as predictions are risky and the market climate is constantly changing.
Zillow has reported that new listings are down 39% year-over-year, and new listings of luxury homes are down 46%. The least expensive home listings are now down 32%, respectively.
Sellers seemed to have assumed, with the beginnings of the pandemic, that they would have less of a chance of selling their home at the higher prices they originally wanted. Higher-end home asking prices were the first to drop.
Interestingly enough, new listings for the bottom 20% price range are actually up 17% from 15% year-over-year.
Still, home prices are expected to only drop 2-3% through the end of 2020.
Zillow also reported that the Q3 of this year is expected to show a 0.13% decline year-over-year, then a 1.18% decline in Q4, followed by a further decline in Q1 2021. Zillow also forecasts that after Q1 2021, there will be an increase of 0.21%.
Still, the current market is ebbing and flowing. Zillow forecasts that the number of homes sold this time of year could fall 60% year-over-year.
You can read an in-depth summary of the Zillow report here.