Despite the economic shock caused by the coronavirus pandemic, home prices have remained firm. Mostly that’s because there were already too few homes for sale and the pandemic only made it worse. In other words, there were more buyers than homes for sale before the coronavirus hit in mid-March and there still are.
New Discounted Listings
But despite the market imbalance – which puts upward pressure on prices – many home sellers are listing their homes at a discount. In fact, according to a new analysis from Weiss Analytics, in the top 25 markets with the highest percentages of discounted listings, at least one-quarter of all new listings have been priced lower than pre-pandemic prices. In some areas, listings can be found at as much as 11 percent below where they were in early March.
Reasons for Pricing Lower
Allan Weiss, CEO of Weiss Analytics, says there are many reasons sellers might price their home lower, even in markets where median prices are rising. “Sellers are discounting their homes for many reasons,” Weiss said. “The sharp decline in April sales motivated many sellers to price their homes to sell. Homeowner equity is at a historic high, and many owe nothing on their homes. They may simply want to sell quickly to trade up or relocate, and that is a choice they can make.” (source)
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