Will Coronavirus Make the Market Plunge
Current data doesn’t reflect negative fallout, but the industry remains cautious
The real estate market was dealing with its own challenges heading into 2020 – including affordability and limited inventory – but there are concerns the coronavirus crisis may deal a heavy blow to the sector.
In March, preliminary data showed the situation has begun to negatively affect both buyer and seller behavior – though not yet to a serious extent.
A flash survey conducted by the National Association of Realtors of more than 70,000 residential members showed that about 78 percent of respondents said the situation had not changed homebuyer interest in their markets. That compares with 13 percent who reported a decline in interest – numbers that were higher in California and Washington specifically.
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Eighty-seven percent said seller behavior hadn’t changed, though 9 percent said the number of homes on the market had declined – a figure that was also higher in California and Washington, two states hit hard by the initial U.S. outbreak of the virus.
Very few reported seeing sellers remove homes from the market due to the coronavirus situation.
The survey was conducted on March 9 and 10.