Home prices are anything but stable, and a lot of different issues factor in. It’s not the same as buying or selling many other products, which always cost roughly the same and give you something to expect. Homes are priced based not just on size or condition, but also on the market conditions, the number of potential buyers, the number of other homes on the market and things of this nature.
That’s where the coronavirus outbreak could have a massive impact. Some experts are predicting that the prices of homes could decline by around a third before it ends. Losing 35% of the value is a massive blow to sellers, though it could ramp up interest from buyers who can get a good deal.
What does that mean for the market? Some think we will see the lowest total sales numbers since 1991.
There are two main reasons for the decline in value. One is that people cannot move around as freely. Even those who wanted to buy before the pandemic may put their plans on hold since they cannot go see homes and do not want to deal with physically moving.
The other reason is that many are out of work, especially in places where the government shut down bars, restaurant and other such areas. An increase in unemployment always means fewer buyers, and that can drive the values down as well.
This is a complex situation, and it is unclear exactly how it will all play out. Make sure you know what legal options you have and what steps you should take.