Housing in for roller coaster rebound post-coronavirus
Realtor.com has revised its 2020 Housing Market Forecast to take the impacts of COVID-19 into account, and the real estate website now foresees a rebound that may not be as upwardly linear as many hope.
The new report, written by Realtor.com chief economist Danielle Hale, anticipates home sales to bounce back as concerns about the virus dips. However, Hale cautioned that a later drop in sales may be in the cards, partly stemming from a future rise of infections as the coronavirus curve enters a potential second wave. That, coupled with lingering unemployment, will lead to what Hale calls “a see-saw recovery with ups and downs.”
“Early in the crisis, sellers showed a willingness and ability to respond to the evolving situation by deciding not to list in the spring, a typically busy time for housing,” Hale said. “Many sellers are expected to come back to the market in late-summer when COVID infections are expected to abate enough to permit a resumption in many types of activities, giving buyers options and boosting sales in these months.”