“What's going on in the market?"

It's a question we've been asked daily since mid-March. While there was a lot of uncertainty at the start of all this, we are now seeing data and statistics that show us where we are heading. 

The National Association of Realtors (NAR) and ShowingTime have compiled information from real estate professionals, buyers, and sellers about the current activity in the housing market. 

April Home Showings on an Upswing

In March, ShowingTime Showing Index recorded a nationwide drop in March, as people and communities responded to the current pandemic. This was the first nationwide drop in eight months, with a 20.1% decrease in showings in the Northeast region, compared to March 2019.

Since April 12, property showings have begun an upswing, with the number of scheduled showings increasing each day. As the real estate industry has pivoted to incorporate virtual offerings and safe procedures, more people are moving forward with their real estate needs. 

Buyer and Seller Behavior

The 2020 NAR Flash Survey: Economic Pulse surveyed real estate professionals regarding buyer and seller behavior since the health crisis began. Here are some of the findings:

Many buyers and sellers are still planning to transact in 2020. Of those members surveyed, 44% reported buyers are delaying the process for a couple of months, and 19% are moving forward now with either in-person or virtual communication. Only 7% cited they are putting off the process indefinitely. 

Seller behavior is similar to buyer behavior. Fifty-five percent are delaying the process a couple of months, with 30% continuing the process. Just 8% are deciding not to sell indefinitely. 

Expectations of Home Prices

While buyer and seller behavior are fairly similar, there are some differences in the expectations of home prices. The Flash Survey found that 64% percent of buyers are expecting a decline in home prices. Of that share, 17% expect a decline by less than 5%, 24% of buyers expect a decline by 24%, 9% expect a decline of 11-15%, and 14% expect a decline in home prices of more than 15%. 

Sellers, on the other hand, are not dropping home prices. Seventy-four percent of sellers have not lowered the listing price of their home. Of those who have, 15% lowered the price by less than 5%, with just 12% of sellers dropping the price by more than 5%. 

Lawrence Yun, Chief Economist at NAR, summed up seller behavior:

“The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a clam approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”