How is COVID-19 Impacting Real Estate Sales?admin / 0 Comments /
The impacts of COVID-19 are far-reaching and include not just health concerns, but concerns about jobs and the economy. An obvious result of the turbulent economy and the alarming rate Americans are losing their jobs is a down turn in the real estate market.
According to an article published by Market Watch, “…the rapid rise in unemployment as a result of the coronavirus pandemic and its accompanying stay-at-home orders will curtail many Americans’ ability to afford a purchase as big as a home”, states reporter Jacob Passy. Further, sellers are more hesitant to put their homes on the markets due to uncertainty about pricing and the desire to avoid strangers from entering their homes unnecessarily.As a result, Fannie Mae projects that home sales will fall by almost 15% in 2020.
Yet, this doesn’t necessarily translate to bad news the prices of homes. Fannie Mae still expects the median prices of homes to rise for both existing and new homes. Further, the article states, “The mortgage giant currently expects the U.S. economy and home sales both to rebound in 2021. But that rebound is contingent on the pandemic’s trajectory.”
Read the entire article.