07/16/2020
What will the real estate buying market look like after COVID-19? Construction delays, market uncertainty, and buyer fears have created a drop in real estate purchases during the crisis. However, all factors indictate change is on the horizon. Once the COVID crisis passes, the real estate buying market will likely open up with new construction and eager buyers.
Changes during the crisis
The coronavirus crisis puts a damper on construction projects. For instance, the number of new homes dropped by 10,5%. However existing home inventory fell more than twice that, at 24%. The number of new home project starts in April 2020 was 29.7% lower than the year before. Combining these factors results in fewer homes available for buyers.
To protect the economy from recession, the government dropped interest rates to some of the lowest levels in history. These lower interest rates make buying or frefinancing a home more affordable and desireable.
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