2020 started as the healthiest year for home sales in history. We’ve relayed the great appreciation rates coming from CoreLogic, where they even indicated annual forecasts of appreciation near 4-5%, showing more strength going forward. Since the Coronavirus has continued, we are now seeing a slight drop in home buyer demand. Some models of the virus’s spread are showing a housing market declining from now until August, and others are showing the declining market from now until October. There is light at the end of this tunnel, however, and we have to play this intelligently. With either model, there is most likely going to be declining prices in many areas of the country.
So how do we handle this intelligently? Sellers should still price correctly and know that your crop of buyers is going to be smaller over the next few months during this period, but it will come back soon. Again, some experts are predicting a bounce-back of the market in August.
For buyers, they should stay in the game and push to purchase a home at a 3-12% discount as some experts are saying. Combining the fact that interest rates are still very low, with homes potentially selling at a discount, affordability has just increased for home buyers. This is going to be a bumpy road, but it will be temporary, and if you are looking to purchase, this may be one of the best windows you have to capture a great opportunity before housing comes roaring back.
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Sources:
CoreLogic
By: Jon Iacono