Pending home sales in March saw expected declines as a result of the corona virus outbreak. Each of the four major U.S. regions saw drops in month over month contract activity and year over year pending home sales transactions.

Chief Economist Lawrence Yun Weighs In on Housing Market Health During COVID-19

“The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listings and new contracts,” said Lawrence Yun, Chief Economist for the National Association of Realtors. “As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listing and buying activity will resume, especially given the record low mortgage rates.”

According to Yun, technology tools such as virtual tours and e-signings are helping connect buyers and sellers. Fifty-eight percent of Realtors recently surveyed reported that buyers are using virtual tours. Forty-three percent said buyers have taken advantage of e-closings. Surprisingly, ten percent of Realtors reported the same level or even more business activity compared to levels before the economic shutdown.

Yun believes that the second quarter sale activity will “pick up when the economy reopens as many potential home buyers and sellers indicate they’re still open in the market or will be in a couple of months. Home prices remain stable as deals continue to happen with the growing use of new technology tools.”

“Although the pandemic continues to be a major disruption in regards to the timing of home sales, home prices have been holding up well,” Yun stated. “In fact, due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high.”

Chief Economist Mike Fratantoni Weighs In

Mortgage Bankers Association Chief Economist Mike Fratantoni sees housing as a bright spot in lifting the sagging economy. “We are beginning to see an uptick in the pace of housing demand, which coincides with re-openings in part of the country.”

Our northern Colorado market remains strong and offers great opportunities for sellers and buyers. Let’s discuss your plans for your next move!

Source: RE/MAX Advanced Notice