With over 100,000 deaths recorded in the US during the first wave of the COVID-19 alongside 40 million US citizens filing for unemployment, many businesses, sectors, and industries are suffering as well. Low mortgage rates and historically low inventory would condition a perfect environment for buying a house, however, it appears that the housing market is on a pause as prices have experienced minor declines as well as reporting minor sales. While experts are debating the 2020 scenario in the light of the 2008 crisis, how is COVID-19 impacting the housing market?
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Housing Sales and New House Listings Drop Amidst the Outbreak
According to the research conducted by Zillow, which showed that the housing sales have dropped dramatically during the period when the virus was at the peak of activity. Moreover, the number of new house listings also dropped alongside the declining web traffic activity to real estate websites. Markets such as New York and California reported drops by -70% in new house listings.
The Housing Market Most Vulnerable in Florida
Weekly mortgage rates are also dropping with the declining activity in the real estate and housing market amidst the crisis. In the meantime, ATTOM Data Solutions created a report n the local conditions of the housing market in the US. According to the report, Florida appears to be the most vulnerable area in this sector. New York is following strict declines in the market. However, the housing market remains active in Boston.
Preventing the 2008 Scenario in the US Housing Market
The federal government is also taking steps to prevent the scenario from 2008 by implementing a moratorium on foreclosures. The COVID-19 outbreak is pulling down mortgage rates in the US, which is how the housing market may be affected. Mortgage services could also experience the full effect t of the crisis, which is why the federal government t is directing mortgage services reduced payments or forbearance.
