I’ve said it before and now I’m going to sing it from the rooftops! Why? Because economists are finally coming out and declaring… Coronavirus is NOT going to trigger a housing downturn in 2020.
If you’ll take a walk back into the recent past with me, I’d love to remind many of you who were messaging me about the end of the world.
It seemed like I would post about low rates and I would get chastised for advertising a hot housing market in the midst of a pandemic. But, even in such a volatile market I had a team of loan officers and hundreds of buyers complaining that houses were being sold faster than they could see them. An open house meant you had better get there an hour early or don’t bother going at all.
What nobody expected during the pandemic was the all time lows that interest rates would reach, in conjunction with the areas of the economy that expanded were not affected by coronavirus while the parts that were, were largely non demographic households that wouldn’t have considered home buying anyway.
We ran into a small slump at the beginning of the year where many potential homebuyers and sellers put their real estate transactions on hold. But this only incited them to BUY and SELL with a vengeance the moment the pandemic began to show positive upturn. We also have seen very little ‘desperation selling’ as HousingWire brings out. We did not have a heavy influx of houses coming to the market to be sold in a panic because homeowners were not severely impacted by the economic hold. In fact, most homeowners remained in a strong position to continue owning their homes.
The other important factor was that the government made lending MORE difficult for government programs. While we initially thought this would negatively impact the market, we found that it deterred the weakest buyers from making home purchases but overall did not slow down strong buyers from moving forward.
-Mirjam Meili (WAM Squad Writer)