Should Home Sellers Lower Asking Price During Pandemic

Q: With unemployment so high now, do you think people who sell their homes now should lower their asking price? Kevin, Palisades Park, NJ

A: Every local real estate market is different and has and will respond to the pandemic and the economic fallout that results from it in its own way. What I’ve seen so far during the pandemic in north jersey is after the initial lockdown in March and April a rebound in buying activity in May and June due in part because the virus is currently under control in our area. There was pent up home buyer demand and even lower housing inventory than before the pandemic which so far has made home prices in our area resilient—I’m even seeing bidding wars now, so I do not think it’s necessary to lower asking price to be competitive. Everything I just said, however is subject to change–nobody really knows exactly how things are going to evolve with the housing market and the economy as a result of the pandemic–there are many factors like the unemployment rate long term, the GDP and the scope of retail business failures going forward that will affect things down the road. The key is to pay close attention to what’s going on because the pandemic and the economy have and continue to change rapidly. Thanks for your question, Kevin.

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