Home Sales Should Rebound

May 27, 2020
Home Sales Rebound
Current predictions show 2020 home sales down 15% year over year.

 

Realtor.com now expects that home sales in the U.S. will rebound in the late summer and early fall as fears of the coronavirus begin to cool down, before experiencing a downturn again later in the year. The real estate site released a new housing forecast, which predicts that despite an uptick in transactions during the third quarter, largely from Millennials, home sales will be down 15% year over year. According to the forecast, home prices will flatten nationally as demand shifts to secondary markets, where prospective buyers find more affordability and space. The site also predicts that a second wave of coronavirus infections may happen later this year, driving home sales down even further during a time when home sales typically fall anyway. “The path forward for home sales will resemble a W shape with homes sales rebounding in July, August, and September as fears of the coronavirus taper off and buyers return to the market to make up for the lost spring homebuying season before dipping again in the final months of the year as virus infections spike again and the lingering impact of the high unemployment rates are felt,” the real estate site said in a release. The forecast also predicts that mortgage rates will drop to new record lows – below 3% – by the end of 2020. The realtor.com forecast predicts that housing inventory will remain low, as sellers are going to stay put and housing starts will decline. 

Source: Realtor.com