Current clients, past clients, and people thinking of selling their home right now are all asking us whether home prices are falling.
It’s a logical question given the uncertainty in the marketplace due to COVID-19, but the good news is, prices are not falling, and I don’t see them falling anytime soon.
Price always follows supply and demand. On the supply side, a lot of would-be sellers have held off on listing their homes in the past month or so, choosing instead to wait and see what would happen to our marketplace. Furthermore, many home builders in Houston have ceased new construction. This has made available inventory shrink significantly.
As far as demand goes, the number of month-over-month home showings has dropped (obviously), but the number of sales hasn’t—at least not substantially. In March, The Franklin Team sold 43 of our listings. In April, we sold 39. In April 2019, we sold 33 listings, so year over year, our sales are actually up.
With demand still present, we’ve already seen an uptick in showings this May. As long as demand is strong and supply is low, home prices won’t go down.
However, keep in mind that this is a fluid situation, so if you have questions about your Houston submarket and what the latest data shows, don’t hesitate to reach out to me. I’d love to hear from you.