COVID-19 took the world by storm. No one was prepared for it, least of all property investors and people who are trying to sell their home.
While the pandemic has wreaked havoc around the world, the US housing market has been one of the markets that were hit the hardest.
The longer the pandemic lingers, the more damage it does to home sales throughout the United States.
Here's what you should know about the changes that the COVID-19 pandemic has brought to the US housing market and how to adapt.
Prices Are Holding Firm, but Home Sales are Dropping
When it rains it pours, and the US housing market is in torrential rain with no end in sight. Property prices have been staying the same in much of the country and are rising in other areas.
Despite the fact that prices are holding up, sellers are having a hard time trying to entice wary buyers who are strapped for cash and afraid to plunk any of it into a house.
The pandemic has also done considerable damage to the credit scores of millions of Americans, practically eviscerating them and making it more difficult to qualify for financing when buying a home.
With so many people having financial troubles at the same time, it makes for rather unique market conditions. In this case, the word unique is of course a euphemism for absolutely dreadful.
The people that want to sell are faced with buyers that can't afford to buy property. Meanwhile, the sellers are dealing with their own financial troubles which may lead many of them to progressively drop their prices in the future.
So far, prices are staying put, but who knows how long the trend will last. One thing that is important to note here is that property values should remain the same.
To have the value of a $150,000 home drop to $90,000 because of a pandemic would be excruciating. Painful as it may sound, it’s a distinct possibility if the pandemic continues to ravage the economy.
Sure your home might be worth $150,000, but you'll have a devil of a time finding anyone with the ability to buy it. This begs the question, how badly do you want to sell your home?
Serious Measures for Serious Sellers, Why it Pays to Get Out of the Housing Market Fast
When you're trying to sell a home in this pandemic-stricken market, the longer you wait it out, the more risk you're taking on. The truth is, no one knows how long the pandemic will endure.
Property prices may eventually start to drop in tandem with the duration of the COVID-19 pandemic, or maybe they will climb higher, no one can predict market conditions like this.
If you want to play it safe, you should seek out a company willing to buy your property at a discounted price.
Although selling at a discount might not sound appealing, being forced to sell your home at 50% of its value after waiting too long is even less appealing. Prices are firm right now, but how long will it last before they start to buckle?