Please anything but not L-Shaped, right!
Today in my topic I will continue to talk about the current and latest updates on the real estate market. Because it’s truly tremendous what’s happening right now.
What people do in a similar situation “ As if humanity has been through such a pandemic before”!!
However, usually in tough times, we are collective and eager to read EACH PIECE OF INFORMATION we find, we read everything and pay attention to all news and instructions, right!
And as I always do, I do my research and add under my every article all the references from trusted sources so you can check-in and follow if you want to keep updated, okay.
Shall we begin?
After the US government decided to start getting back to our working routine, and we expect to witness steady growth in the real estate market, but unfortunately the market didn’t provide us with any strong clue.
Until now the unemployment rate remains high, which probably will lead to foreclosures rising after the moratorium is lifted on lenders pursuing delinquent homeowners with federally insured mortgages.
Ironically, the people tend to refinance and renovate more than selling a house, houses are still not an available product, and due to the ups and downs in the real estate market, buyers don’t want to go to this road and instead they rehabbing their houses.
The longer the pandemic forces the shops and markets to stop, the more cautious people are about investing and fearing their financial situation…
Fear of missing out!
And that moves us to the predictable question, is this situation going to last till the end of 2020?
We have a lot of shapes that our experts use as an expectation for real estate marketing 2020.
Is called an optimistic shape for the market and some of the experts believe that the second part of the year will be as fast growth and flourish despite the fear sense of losing money.
But mostly, they agree that the best shape describes this period which is ↓↓↓
“personally, I believe the same way” and this feeling is based on solid evidence I have mentioned some of them up above.
- We might face a second wave of the virus, and the government shall re-lock
down the shops again for a certain period, to contain the virus from spreading again among us.
- Sellers-buyers both of them can’t approach the option of buying a house or
even go in deals. 3. The unemployment rate reflects a high figure these days, and some
business owners are stumbling, moreover, there are people who didn’t get a job so far. 4. Not to mention that the $600 weekly unemployment subsidy is scheduled to
end after July 31.
(It will effectively lapse by July 26 in all states, due to the schedule they use to pay benefits.)
- Have I mentioned the moratorium period, which will be effective until August!
What will happen to foreclosures? RISING! 6. Mortgage delinquency rates by states, people are still facing the hardships to
pay their mortgage even during the moratorium period.
(The spooky thing in this point, in particular, is that a lot of unexpected states to be in the hardship at most such as New Jersey, Hawaii, Nevada, etc.)
So W-Shaped is more transparent and expresses the current situation for the market.
One last word before the conclusion:
In April 2020, the National Association of Realtors surveyed its members.
About 90% said the pandemic has reduced home buyer interest. Of those, 60% are simply delaying their purchase for a couple of months. Almost two-thirds of buyers (63%) expect lower prices.
References: https://flemingwatson.com/what-the-heck-is-a-v-shaped-recovery/ https://www.noradarealestate.com/blog/housing-market-predictions/#:~:text=And%20 low%2Dinterest%20rates%20and,undaunted%20by%20the%20economic%20recess ion. https://www.forbes.com/sites/dimawilliams/2020/07/10/is-it-going-to-get-better-before -it-gets-worse-five-experts-share-predictions-for-the-us-housing-market-in-the-secon d-half-of-2020/#32808f077026 https://www.thebalance.com/is-the-real-estate-market-going-to-crash-4153139
https://grow.acorns.com/second-quarter-earnings-report-2020/?&qsearchterm=Housi ng%20Market https://www.cnbc.com/video/2020/07/08/state-housing-market-mortgage-coronavirus -pandemic-squawk-box.html https://www.cnbc.com/video/2020/07/08/housing-market-interest-rates-mortgages-sq uawk-box.html https://www.washingtonpost.com/realestate/uncertainty-shrouds-the-housing-market- through-2020/2020/07/08/1030e93e-bba4-11ea-bdaf-a129f921026f_story.html
Writing by Rewan Emam