The sale of existing homes across the U.S. has taken a nosedive since the beginning of the year amid lockdowns due to COVID-19. Despite this lack of demand, the median price of existing homes continues to go up.
As of March, the median price of existing U.S. homes is up 8 percent since last year. While home sales had a strong end to 2019 with prices up 9 percent a year before, that number has quickly dwindled to just 0.77 in March.
With falling home sales, many would expect home prices to also fall due to lower demand. However, according to the Wall Street Journal, the supply of available homes is falling even faster than the demand for them, leading to a steady increase in prices.
Many sellers are also weary to cut prices, with the belief that most buyers are just temporarily unable to attend viewings in person during COVID-19 lockdowns.