We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies.More info
Juan Real Estate GroupJuan Real Estate Group
Call Us:

(978) 581.0801

Message Us:

[email protected]

  • Meet The Team
  • Testimonials
  • Schedule a Call
  • Read Our Blog
  • Seller Experience
  • Free Home Valuation
  • Our Marketing Strategy
  • Buyer Experience
  • Search for Homes
    • Call Us:

      (978) 581.0801

    • Message Us:

      [email protected]

    Featured Image

    What Impact Might COVID-19 Have on Home Values?

    What Impact Might COVID-19 Have on Home Values? A big challenge facing the housing industry is determining what impact the...

    • Juan Murray
    • June 13th, 2019
    • 3 min read

    What Impact Might COVID-19 Have on Home Values?

    A big challenge facing the housing industry is determining what impact the current pandemic may have on home values. Some buyers are hoping for significant price reductions because the health crisis is straining the economy.

    The price of any item, however, is determined by supply and demand, which is how many items are available in relation to how many consumers want to buy that item.

    In residential real estate, the measurement used to decipher that ratio is called months supply of inventory. A healthy market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.

    Going into March of this year, the supply stood at three months – a strong seller’s market. While buyer demand has decreased rather dramatically during the pandemic, the number of homes on the market has also decreased. The recently released Existing Home Sales Report from the National Association of Realtors (NAR) revealed we currently have 3.4 months of inventory. Homes should maintain their value during the pandemic.

    This information is consistent with the research completed by John Burns Real Estate Consulting, which recently reported:

    “Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”

    What are the experts saying?

    Here’s a look at what some experts recently reported on the matter:

    Ivy Zelman, President, Zelman & 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 fiscal stimulus provided by the CARES Act will mute the impact that the economic shock has on house prices. Additionally, forbearance and foreclosure mitigation programs will limit the fire sale contagion effect on house prices. We forecast house prices to fall 0.5 percentage points over the next four quarters. Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand. Price growth accelerates back towards a long-run trend of between 2 and 3% per year.”

    Mark Fleming, Chief Economist, First American

    “The housing supply remains at historically low levels, so house price growth is likely to slow, but it’s unlikely to go negative.”

     Bottom Line 

    Even though the economy is on pause, it appears home prices will remain steady throughout the pandemic.

     

     

     Courtesy of Simplifying the Market 

    Our client processes.

    Don't forget to check out our real estate selling experience information.

    Selling

    Purchasing a home?

    We've got your buyer concerns and questions covered.

    Buying

    Author Photo
    About the author

    Juan Murray

    (617) 721-0961
    • facebook
    • instagram
    • linkedin
    Juan got his start in the residential real estate market in 1994 and has never looked back. His mission is to provide excellence to his clients, and he is always looking for ways to improve the real estate experience for his clients and colleagues in the industry. Early in his real estate career, he worked as the Housing Rehabilitation Director for a national non-profit organization, Neighborhood Assistance Corporation of America (NACA). His goal was to gain more knowledge of the construction and renovation of existing homes in conjunction with working with 1st-time buyers. He effectively managed over 25 residential construction project managers on the East & West coasts while implementing procedures to improve communication between contractors, property owners, and banking representatives. He also developed resources, designed processes, and organized all aspects of real estate property acquisition and renovation. Juan completed a home inspector licensing course on his way to becoming a licensed home inspector. But after completing 30 inspections as an apprentice observer, after crawling under numerous porches and “crawl spaces,” he decided it wasn’t his cup of tea. Juan has always had a sharp eye for market trends and an innate understanding of what his clients need. That’s why, as a top real estate agent in Boston, he is constantly ahead of the curve, anticipating changes in the market and helping his clients manage their real estate goals. His keen intellect, quick wit, and tireless work ethic make him an invaluable partner for anyone looking to buy or sell property in the Boston area (or via his referral partners worldwide). Although Real Estate is a large part of his life, it is not the only part. He loves hanging out with family and friends, being in the kitchen, enjoying great food, anything Apple or Cole Haan, gadgets, great cigars, F1, motorcycles, photography, and traveling (to name a few). He lives with integrity and tries not to take life too seriously.

    Similar posts like this

    Stuck Between Moving and Staying? These 3 Questions Can Help You Decide

    Feeling torn about moving or staying put? These 3 questions can help you get clear on what matters most—beyond just your...
    Read more

    Summer Home Shopping in Boston? Here’s How to Beat the Competition Without Overpaying

    Buying a home this summer in Boston? Here's how to write a competitive offer, understand seller motivation, and know whe...
    Read more

    Is Your Listing Photoshoot-Ready? 7 Overlooked Details That Matter in Boston

    Most buyers see your home online before they ever step inside. Use these 7 often-missed tips to make sure your listing p...
    Read more
    Juan Real Estate Group

    Juan Real Estate Group

    769 Centre St, Suite 209, Jamaica Plain, MA 02130

    769 Centre St, Suite 209, Jamaica Plain, MA 02130

    Call Us:

    (978) 581.0801

    Message Us:

    [email protected]

    Footer Links

    • Meet the Team
    • Testimonials
    • Schedule a Call
    • Read Our Blog
    • Sellers
    • Get Your Home's Value
    • Search for Homes
    • Buyers
    Privacy Policy

    Juan Real Estate Group © 2025

    Powered by