COVID-19 poised to upend normal seasonal housing

As far as housing is concerned, the spring period has always been the busiest time for home sellers and buyers. But for this year, the narrative has dramatically changed due to the spread of the deadly Covid-19 pandemic. The pandemic has rapidly spread in the US, forcing the states to put in place public health measures that forced people to remain at their homes and brought a downward trend of the economy. During April and March, the activities of listing, buying, and selling of homes usually are at the peak. According to a survey conducted by NAR Flash on the economic pulse in mid-March, almost 50% of real estate agents confirmed that there was a decrease in buyer interest as a result of the impacts of the pandemic. During spring, the sellers listing prices usually are high until the high demand season is over. The listing prices become even higher during the summer season, according to previous events. Research shows that listing your home when the prices are at peak could add you a 1.1% on your listing price. During this year, the situation is different. At this time, the listing prices are supposed to be trending upwards, but instead, they are actually dropping. The unusual trend is as a result of the effects of Covid-19. If the “Stay at Home” campaigns remain until later in the year, most families that had halted their home-buying plans may now begin to search for a home to buy despite the ongoing crisis. The search COVID-19

POISED TO UPEND NORMAL SEASONAL HOUSING

As the effects of the pandemic continue to persist, the prices of homes are likely to reduce. The drop in prices is a result of the release of the relief funds that have seen lenders offering options for mortgage forbearance. Also, on the other hand, the number of unemployed individuals is rising with each passing day. The loss of jobs could force many people to sell their homes, and this potentially leads to a drop in prices of homes. The decline in home prices comes as a surprise to many people as they expected home prices to shoot up due to loss of jobs and the persisting effects of Covid-19.

Due to fear from the spread of Covid-19, many people who were planning to sell their homes during this year’s spring season will be forced to wait until the pandemic is over. No one would want to let agents and potential buyers to come and view their homes due to fear of getting into contact with a person with Covid-19. When the pandemic is over, many home sellers will now go ahead to place their homes under listings. On the other hand, there is a high chance that people who were planning to buy homes during the spring season are also waiting for the pandemic to go away in order to go on with their plans.

for a new and better home may also be compelled by the many hours and days that were spent at home hence making the occupants bored by their current place.

2020 is going to be no typical year in the housing market. The effects of Covid-19 have already shown that this year’s schedule is not going to be a normal one in terms of the occurrence of events. So it is best for potential buyers and sellers to ensure flexibility to be able to cope with these trying times.

References

https://www.realtor.com/advice/buy/real-estateagent-wants-you-to-know-housing-marketcoronavirus/. https://www.realtor.com/research/initial-impactcovid-19-housing-market/. https://www.realtor.com/advice/buy/should-i-buy-ahouse-during-coronavirus-crisis/. https://www.realtor.com/research/covid-19-poisedupend-normal-seasonal-housing-trends-can-sellersexpect-year/