How will Corona Virus impact the real estate market?
Posted On 11:14 am
Corona Virus has been on the minds of just about everyone these days as the virus is changing just about every way of life but the big question is how is it affecting the real estate market?
Due to the impact from Corona Virus, the Federal Reserve has recently lowered interest rates by a half of a point and this has brought more people to the real estate market who had been waiting to buy a home because rates were too high.
Where the housing market currently stands
The housing market is, in a word, tight. Consider Seattle, where home prices have risen dramatically as it has become one of the country’s leading tech hubs. And while the nation as a whole is suffering from housing shortages, Seattle’s available homes for sale dropped a dramatic 27.6 percent year-over-year in January.
The housing market in other cities isn’t much better off: supply is at near record lows nationwide, and demand is near an all-time high. This combination means home prices are also near all-time highs in most cities as many potential buyers are bidding on a limited supply of homes for sale.
At the end of 2019, the number of houses for sale dropped even lower, particularly on the West Coast. Compared to a year ago, some cities saw double-digit percentage decreases in available homes for sale, although that is partly a function of there having been a supply spike in the second half of 2019, so the decrease looks more stark than it otherwise would.
Source – Curbed.com
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