We know businesses around the world faced a hard hit due to the COVID-19 pandemic, and the real estate market was 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 home-stay-orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices’.
Situations Post Covid-19 Pandemic
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, which becomes the justified reason for the steep economy of the states.
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 which was 6.5% in January and February 2020 combined. A joint report from new home sales from the U.S. Census Bureau and Department of Housing and Urban Development (HUD) stated; there was a mere drop in home sales by 4.4% since January 2020 (as per 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 the 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 ofthe total requests as compared in 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 post 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 prolongs, 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 in 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 in respect to the real estate.
- If you are looking to sell your house try pushing to the late summer or fall. As per buyers, the home prices usually drop in colder months, making it the best time to buy a house.
- The closing process might witness a slow down. 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 instalments.
Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties they will help in easy home selling. Also we buy houses in as-is condition which avoids the hassles of upkeep and repair. In such tight circumstances the most feasible option is to sell home for cash with a cash buying company, call us today at 7189775462.
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