What To Expect From The Real Estate Market For The Rest Of 2020
June 24, 2020
June 24, 2020
COVID-19 has changed the way that people buy homes. But it hasn’t changed the level of demand for properties. Because demand has remained high, housing prices have remained steady or even risen in some places. Many forecasters expect housing prices to drop during the fall or winter months if the pandemic has another spike and unemployment doesn’t improve. But the reopening hasn’t led to any major national issues thus far, and most analysts remain confident in the near term strength of the real estate market. There is some market uncertainty in the future, because the generous unemployment benefits from the federal government stimulus bill are set to run out at the end of the summer.
Prices Are Expected To Rise In The Summer Months
During the summer months, most analysts believe that home prices are going to rise. That is in part because the country’s re-opening hasn’t hit many hiccups. The federal government’s stimulus plan put more money in Americans’ hands, especially with unemployment benefits giving those laid off due to COVID-19 up to $600 per week. The added stimulus and federal reserve actions have helped to boost the stock market as well.
If COVID-19 Spikes During The Fall or Winter, Prices Could Drop
The problem is that if COVID-19 does spike during the fall or winter months, markets could face serious issues. Federal unemployment benefits run out at the end of the summer, and mortgage and rent deferrals passed by a number of states run out later in the fall. If unemployment doesn’t improve, and another stimulus bill isn’t passed, the stock market and the housing market could be in trouble. It is difficult to know if COVID-19 will spike in the winter months. But with more Americans indoors, and with the traditional flu season running concurrently, it is a possibility.
We Still Don’t Know How High Unemployment Impacts The Future Numbers
At the end of the day, a lot of the real estate market’s success depends on employment numbers. If high unemployment persists over the next several years, then we would expect the real estate market to eventually run into trouble. But if employment numbers improve over the rest of this year and into the future, then the real estate market shouldn’t face many problems at all.
Trying to find the right time to sell can be difficult. Timing the market is hard enough as it is, and adding in a pandemic to the equation just adds another level of complexity to the problem. If you want to sell your home without worrying about these issues, give 4 Brothers Buy Houses a call. We’ll come evaluate your property and give you a free, no obligation quote. You can sell your property on your own schedule, on a timeline that is comfortable for you.