COVID-19 Impact on Home Prices

Dated: July 8 2020

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Strong home purchase demand in the first quarter of 2020, coupled with tightening supply, has helped prop up home prices through the coronavirus (COVID-19) crisis. However, the anticipated impacts of the recession are beginning to appear across the housing market. Despite new contract signings rising year over year in May, home price growth is expected to stall in June and remain that way throughout the summer. CoreLogic HPI Forecast predicts a month-over-month price decrease of 0.1% in June and a year-over-year decline of 6.6% by May 2021.

Unlike the Great Recession, the current economic downturn is not driven by the housing market, which continues to post gains in many parts of the country. While activity up until now suggests the housing market will eventually bounce back, the forecasted decline in home prices will largely be due to elevated unemployment rates. This prediction is exacerbated by the recent spike in COVID-19 cases across the country.

source: https://www.corelogic.com/insights-download/home-price-index.aspx#:~:text=The%20CoreLogic%20HPI%20Forecast%20indicates,in%20more%20than%20nine%20years.

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Bobby Leach

If passion translates to success, Bobby is the example. He embodies what it means to do what you love and relishes every single minute of it. "The real-estate business can be challenging but also very....

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