Covid-19’s impact on real estate | latest developments
COVID-19 Housing Market Update
Covid-19’s impact on real estate | latest developments:
Here are this week’s things you need to know emlaktech.com released a revised economic and housing forecast
this week outlining our adjusted expectations for the rest of the year sales are expected to be down 15% for the year as a whole with larger year-over-year drops in the second quarter when we expect to see the biggest virus-related effects on the housing
Covid-19’s impact on real estate (median home price)
Market you may be surprised to see that. We expect home prices to eke out a small gain this is because there are too few homes for sale and so far the pandemic has kept out sellers as much or more so than buyers limited availability of homes remains an issue and helps keep prices up.
We expect this balance to shift as the economy slows later in the year so that by the end of the year prices could drift slightly lower although mortgage rates this week notched up slightly/ they are still at very low levels despite week-to-week fluctuations going forward. We expect rates to trend lower creating opportunities for well-qualified buyers.
Incoming data is consistent with our forecast our weekly housing trends data shows that many sellers are still sitting out but the declines this week are smaller than last week. a move in the right direction suggesting that fewer sellers are sitting out.
Another positive asking prices are increasing between one and two percent from a year ago but time on market continues to get longer.
A seller’s return buyers are moving in the mortgage application data showed another week-to-week jump so that the total volume of purchase mortgages is down just 10% from a year ago not the 30% or larger, gaps we saw in mid April as buyers come back some markets are doing better than others our April.
The hottest markets list
The hottest markets list shows warm weather markets were most improved while middle America metros topped the hottest markets list including two Colorado metros in the top five
In the jobs market jobless claims
In the jobs market jobless claims continue to trend in a better direction but still signal a lot of ground to recover another three million people filed initial claims this week bringing the total in the last eight weeks to more than 36 a million
The economy and housing markets are making progress
The economy and housing markets are making progress from extraordinarily low post coveted levels but the road to recovery will be bumpy fed chair. Powell noted that this week when he highlighted risks to the recovery that may warrant additional stimulus spending. the path forward will depend on how policymakers react society adapts and medical breakthroughs progress.
Topics that interest you:
Source of the report:
Realtor Chief Economist Danielle Hale