As we previously reported, initially the number of new listings fell at the same pace as the sales (down roughly 70%) so the market stayed in sync and in balance. Therefore, prices have remained relatively stable considering this unprecedented crisis. In any normal recession of this magnitude, we would have seen prices start to crash. The top end and low end of the market have seen a slight price decreases, but the overall average price is still up from the same period last year.
However, we are starting to see a disturbing new trend. As sales volumes started to increase in May, the listing inventory has not been replenished at the same rate so the market is no longer in balance.
If this continues we will see demand exceed supply and this will make it harder to find suitable listings. This will cause buyers to leave the market or put upward pressure on prices. The market in balance with slow moderate pricing increases is the ideal scenario. If this trend continues, we expect prices to rise and interest rates will rise.
As always we don't have a crystal ball and are not sure what the market will do but those are our projections based on current analysis.
And As always I am always available for a Real state chat.