The National Association of Realtors (NAR) has released their monthly Pending Home Sales report for the month of March. This report was partially pre-coronavirus, but the data showed that contracts for existing, single family homes, condominiums and co-ops have slowed. They were down 20.8% in March and down around 16% compared to last year. But, there is a silver lining. NAR’s Chief Economist Lawrence Yun said, “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.” He added, “Due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high,” Larry also projected that the national median home price will increase 1.3% for the year.
As the coronavirus continues to affect the market, we will be seeing many economic reports worsen. At the same time, window of opportunity is opening for those looking to take advantage of temporary period of discounted homes. Also, as the virus dissipates, the housing market should rebound and repair its losses and finish the year at new pricing record highs.
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Sources:
https://on.mktw.net/2VRaExj
By: Jon Iacono
