Think We're Headed Into a Buyer's Market? Guess Again.
As the coronavirus turns the real estate market upside down, buyers are eagerly awaiting the end of a seller-led market with skyrocketing home values and asking prices. Although some of the industry’s top economists are backing buyers’ sentiments that the market is turning in their favor, real estate agents in three of the country’s largest metros told Inman that sellers’ reign isn’t up just yet.
“I’m not sure where you got that information,” Saint Louis-based real estate agent Mark Gellman said of reports classifying the city as a buyer’s market. “It’s unequivocally a seller’s market. There are less than three months of inventory at every price point.” According to Gellman, who co-leads The Gellman Team with his brother, Neil, the coronavirus has exacerbated the city’s inventory shortage as sellers’ are wary about placing their homes on the market in the midst of economic upheaval. “Part of the coronavirus’ [impact on St. Louis] is a weakness in inventory, but keep in mind we’re in the early spring market when there’s always limited new listings coming on the spring market,” Gellman said. “The reason it’s a seller’s market right now is because there are no new listings coming on the market.” “Things are down 30 to 40 percent year-over-year, so the big issue isn’t more buyers, it’s less new listings,” he added. “So coronavirus essentially caused the spring new listing market to not occur.”
In Dallas, Monument Realty owner Eddie Burns echoed Gellman’s sentiments, saying inventory levels in the city have plummeted as sellers decide to stay on the sidelines until the economic activity in the state ramps up. “We’ve seen a surge in new buyer activity and homes starting to sell fast again; however, there’s not enough inventory in the market right now,” Burns told Inman. “There are a lot of buyers coming back, but not enough people are selling, and it’s keeping the prices up.”
Both Gellman and Burns said the shortage is hitting first-time buyers the hardest, as sellers of entry-level homes often have upwards of five or six offers to consider...
