What could the coronavirus pandemic mean for the US housing market?
As the coronavirus pandemic upends parts of everyday life, the housing market could be the next area to experience a shakeup.
Typically, spring is a peak time for house hunting. But uncertainty about the disease has some people on edge about buying or selling, according to realtor.com.
“This was shaping up to be a fairly competitive home-buying season, and that may not be the case,” said Danielle Hale, chief economist at the home website. “It doesn’t mean that we won’t still see sales. But I would expect fewer crowds at open houses. I would expect more shopping online.”
House hunting as coronavirus spreads
In New York, there has been reduced traffic at home showings, and some real estate agents are considering virtual tours, the housing blog Curbed reported last week.
The measures come as health officials say people can help stop the spread of COVID-19 through social distancing. The practice involves avoiding crowds and staying 6 feet from others, according to the Centers for Disease Control and Prevention.
Though people may want to avoid open houses, it’s possible for buyers to tour one-on-one with agents, Steven Berson told the Washingtonian.
Berson, a real estate agent, put his home up for sale during the coronavirus pandemic, the magazine reported.
He’s not the only one.
An Ohio family rushed to list its house before buyers had “second thoughts,” The New York Times reported.
But it may be best for house hunters to be cautious for now, Curbed Atlanta reported.
“This is probably a good time to wait,” Ray Hill, a senior finance lecturer at Emory University, told the blog. “One reason is that a potential buyer might want to have more certainty about how their own financial situation will be affected.”
As coronavirus spreads, restaurants, bars and other businesses have scaled back operations across the country, leaving some workers without jobs.
The landscape also seems to hit apartment hunters.
RentCafé says searches on its website are down 25% as coronavirus spreads.
In an effort to cushion the economy, the Federal Reserve cut interest rates, leading to a surge in home refinancing, USA Today reported.
For now, Hale doesn’t think coronavirus will impact the desire to search for homes but could make people more hesitant in taking the first step of homebuying, realtor.com says.
It’s also not likely housing prices will fall because there’s a shortage of homes available, according to the website.
