Though the housing market dipped 6.4% in March to April, there has not been decline in the market that had been predicted. The Wall Street Journal reported that even though the economy is shrinking and jobs and businesses are disappearing the housing market is still remaining steady. Listing prices are still seeing an increase of about 3.1% in May. But wait, that is listing prices and not necessarily what a home will sell for. Prices are remaining steady because there are not many offerings and the Federal Reserve has lowered the benchmark interest rate to 0%.
- Strangely enough, housing prices are increasing even in the middle of the pandemic and the economic shutdown.
- One reason for the growth in price is that fewer people are listing right now.
- In addition, the government is supporting the housing market strongly, keeping it going.
“People are scared to list their house right now—or at least believe it is better to wait. So those that can wait are waiting.”