How Will Housing Prices Be Affected by COVID-19?admin / 0 Comments /
It may not come as a surprise to read that the housing market has been affected by the COVID-19, but many home owners and potential buyers may be curious what experts think the future holds for this year’s real estate market.
As stay at home restrictions coupled with fears of the spread of the pandemic began in March, pending sales on homes took a direct hit. In fact, they fell 20.8% in comparison to February. According to an article published by CNBC.com, the housing market had already been impacted by a shortage of homes for sale. As the news and impact of COVID-19 settled in, the shortage became more drastic as owners decided not to list and some homes were actually de-listed.
However, experts believe, according to this piece written by Justin Sullivan, that this impact should turn around. Quoting Lawrence Yun, NAR’s chief economist, “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts. As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”
After 5 weeks of decreasing mortgage applications, there was recently a double digit rise in mortgage applications. And, although the home sales may be low for the year, home prices should not be impacted. The fact that there is still a shortage of homes and the mortgage rates are low enough to attract buyers, prices could see some significant increases.
Read the entire article.