As COVID-19 started to impact the housing markets during a wind-down in mid-March, new home sales in the United States plummeted 15.4 percent according to the Commerce Department. In contrast to that, I read an article from Forbes that talked about how homes are still moving, even those with outsized price tags. That article noted that, "Agents on their toes with willing buyers are adapting rapidly. And motivated sellers are still closing deals."
So what is really going on? Whenever I need some real insights, I turn to Plus's Real Estate team, led by Kelly House. With 13 years of relocation experience and 18 years as a licensed real estate professional, Kelly was recently interviewed by AIRINC. Some of the questions that he answered are:
- How has COVID-19 impacted buying and selling real estate in the United States and Canada?
- Is it a good time to buy or sell?
- How is COVID-19 changing the real estate market for buyers and sellers? Has COVID-19 made it a buyer’s market?
- Is risk associated with jumbo loans having an impact on the upper levels of the sales markets?
- With all the uncertainty in the market right now, how do you support and reassure clients?
After catching up on the insights of the appropriately named Mr. House, consider these predictions from Realtor.com as they look out at the rest of 2020:
- Home price growth will flatten, with a forecasted increase of 1.1 percent
- Inventory will remain low, but the rate of decline steadies and the mix of homes for sale shifts toward greater availability of lower-priced homes
- Mortgage rates remain low and may slide under 3 percent by the end of the year
- Home sales are constrained by low inventory and diminished seller and buyer confidence as the effects of COVID linger in the labor market
- Buyers seeking affordability and space drive interest in the suburbs
Also, try a few of our previously published posts related to COVID-19 and the U.S. real estate market:
Typically, the hope is for a linear path for the homebuying and home selling process. Most of the time, there will be at least slight deviance from the path during the process. Currently, there’s more deviation than is standard, but the real estate market is resilient and somewhat surprisingly resilient in the current times.