Impact Of COVID-19 On Real Estate Prices Trend

We know businesses around the world faced a hard hit due to the COVID-19 pandemic. The real estate market was great to hit & not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With homestay orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices Trend’.

Situations Post Covid-19 Pandemic            

As stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen.  According to recent claims, the unemployment rate is approximately 30 million. This becomes the justified reason for the steep economy of the states and affected Real estate Prices Trend.

Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain was 6.5% in January and February 2020 combined. A joint report on new home sales from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) stated; that there was a mere drop in home sales by 4.4% since January 2020 (as per the current post-Covid-19 scenario). The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.

Housing Inventory Situation

The housing inventory has been quite low. As of February 2020, it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify the virtual tour requests in April made up one-third of the total requests as compared to the month of March.

A Complete Home Sales Analysis

As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process.  The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties posts 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources).  The percentage stands to be amongst the biggest declinations of this year. If the situation is prolonged, the bar may see a fall in inventory in the coming times.

There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020.  Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact on the housing market.

What To Expect From Home Selling Or Buying?

Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt with respect to real estate.

• If you are looking to sell your house try pushing to the late summer or fall. As per buyers, home prices usually drop in colder months, making it the best time to buy a house.
• The closing process might witness a slowdown. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
• Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly installments.

Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties which will help in easy home selling. Also, we buy houses in an as-is condition which avoids the hassles of upkeep and repair without taking into consideration of Real estate Prices Trend. In such tight circumstances the most feasible option is to sell the home for cash with a cash buying company, call us today at 7189775462.