Now that the economy in the tri- state area is beginning to open up, the big question in real estate is whether home values will go up or down from this point forward. The strongest predictor of this metric is also the simplest: supply and demand.
The coronavirus has reduced both home buying and selling activity this spring. Once the virus becomes a lesser factor, everyone will get back to buying and selling – but not at the same speed.
If buyer demand comes back quicker than sellers putting more homes back on the market, home prices will go up as the economy reopens. Conversely, if more homes go up for sale before buyers are ready to get back in the market, prices will level off or eventually decrease. Before the virus hit, it was a seller’s market in real estate; time will tell if that trend continues once things start moving again.