Last week, Covid-19 caused a big drop in financial markets. Interest rates were cut by half a percentage point. Home buyers and sellers are wondering how this will impact our housing market.
Before the virus
Before the coronavirus concerns started, KW’s housing market was very strong. We have a seller’s market with historically low levels of inventory.
Is now a good time to sell my home?
Demand is high. Much higher than supply. It’s a seller’s market with low inventory. And interest rates are historically low. Sellers are “holding offers”. Buyers are competing against each other. The list price to sale price ratio is rising. Homes are selling well over list price.
Is now a good time to buy a home?
Don’t try to time your decision based on speculation about home prices. Even in the event of a recession, expect home prices to remain fairly stable. If you want to buy a home this year, don’t wait for prices to go down. Consider instead your personal financial situation and your job security.
Could the coronavirus cause a recession?
It’s too early to predict what will happen. But already supply chains, global travel and other areas of our economy are being impacted.
Will housing prices drop if the coronavirus causes a recession?
Historically, the housing market is relatively stable, even during a recession. A recession takes a long time before it impacts home prices
Kitchener-Waterloo Real Estate News