When the pandemic first hit in March, sales dropped 8% from the previous month. Now, buyers are slowly getting back into the game since mortgage rates are at historic lows and nearly 70% of the workforce is still holding secure employment.
Low housing inventory levels before the COVID-19 crisis mean that it is unlikely home prices will drop. It’s still a good time for sellers to consider making their moves.
Sales activity for 2020 is expected to drop 10-15%, which, according to Dr. Yun, Chief Economist for National Association of REALTORS makes sense given the circumstances. On the other hand, come 2021, Dr. Yun projects that sales will increase 15%, with prices rising 3-5% as pent-up demand manifests itself.
Dr. Yun shared that in today’s climate, “Trying to purchase a home and get the deal done is far safer than visiting grocery stores.” Real estate professionals are going above and beyond with social distancing practices and sanitary measures to keep clients and colleagues safe during transactions.