In February of 2020, the entire United States went into an effective “Quarantine” to minimize the spread of COVID-19. As a result, the real estate market saw a rapid decrease in buyers and sellers and the economy underwent a “shutdown.” The reason behind the rapid shrinkage of transactions in the real estate market is because of the lack of in-person contact that is absolutely vital to the sale of a property.
From February of 2019 to February of 2020, the number of homes sold reduced by about 40%. However, new studies indicate that as the economy slowly recovers, “more buyers and sellers [return] to the market” (Santarelli).
Economists forecast that the housing prices will continue to fall, but that the transactions between buyers and sellers will see “balanced conditions throughout the year” (Santarelli).
With the coronavirus pandemic still imminent, the signs of the economy rebounding from its shutdown is unpredictable.
However, many economists agree that regardless of the pandemic still looming, there will be a continuous and steep decline in new listings, which will have a great impact on the real estate market.
Santarelli, M., & Rollheiser, J. (2020, July 05). Housing Market Predictions 2020 & 2021: Forecast & Trends. Retrieved July 09, 2020, from https://www.noradarealestate.com/blog/housing-market-predictions/