As anticipated, home sales across the nation has declined in the last few months, but homes spent less time on the market and sold at higher prices than last April. So what can we expect from the housing market in the coming months?
In the past, low inventory and even lower mortgage rates would normally predict a competitive home buying season. However, the coronavirus is making both home buying and life, in general, anything but normal. The idea of relocation is a cause of anxiety for most Americans these days. During the pandemic, home searching has dropped due to fear of spreading the virus, and in result, new listings have dropped with the decrease in demand.
Due to the lack of demand, The Federal Reserve stepped in to implement emergency interest rate cuts after reviewing the initial declines during the outbreak, bringing the yield to almost 0 percent. These efforts are in the hopes of stimulating interest with the American people.
Doctors across the nation have expressed that, “You don’t make the timeline, the virus determines the timeline” when it comes to when COVID-19 shelter in place orders can be lifted. Based on the current standing of the housing market, the same applies to it’s recovery. However, we remain hopeful that given the timeline for closing on a home is usually between 60 and 90 days, the housing market recovery will likely be a gradual upward climb, and any recovery will still be subject to whether or not the virus will be at bay.
