Real Estate Market 2020: Trends Amid COVID-19
In today’s Boston real estate blog post, we’re going to look at the real estate market from a macro point of view.
Home sales nationwide
The housing market predictions from various sources like Realtor.com shows that sales of homes will decline by 15 percent in 2020. The home prices would flatten out. That’s compared to the original housing market forecast of a decline of 1.8 percent in home sales. Single-family housing starts, which were expected to increase by 10 percent in 2020, are now predicted to decline by 11 percent.
That’s mainly due to vigorous social distancing norms and economic uncertainty has compounded this temporary restraint on real estate transactions. According to their statistics, the new listings have declined across the nation’s largest metros as sellers wait out the crisis. The positive forecast is that there is expected a short-term bump in sales for late summer and early fall due to pent up buyer demand, fear of the pandemic reducing, and low mortgage rates.
Realtor.com’s recent report for June 2020 shows that with the opening up U.S economy, the key housing indicators have begun to turn around.
Boston Real Estate and the Bottom Line
In the last numbers reported for May 2020, Boston condo sales were down 42.89%
As home sales being to accelerate and business activity continues to expand at a cautious pace, it is a long way to go. Buyer demand is inching up but many sellers have yet to return to the market. As inventory declines in the major U.S housing markets, it raises new challenges for both buyers and sellers. As you peruse further, we’ll discuss in future Boston Real Estate Blog posts some of the key housing indicators, and based on them we’d get reasonably accurate housing market predictions for 2020 and the foreseeable future.