According to the latest forecast by Zillow, home prices are expected to drop between -2% and -3% in the following period of 2020. Moreover, home sales have already dropped by -60%. Bay Area is still roaring, however, untouched by rises and dips of the economy. As analysts claim, Bay Area may see price drops and light discounts in 2020 with the current situation. During shutdowns and halts amidst pandemics, the Bay Area sellers and buyers have retreated, while there is a strong demand and only a few homes for sale.
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National Home Sales Expected to Rebound
The market is experiencing shocks in demand and supply when it comes to the housing market. Analysts expect to see home sales recovering gradually from the dip noted in spring. The recovery is expected by the end of 2021. Due to the long-term shortage in home supplies, Bay Area shouldn’t see more dips than the rest of the country.
Buy Offers Still Active in the Bay Area, Local Agents Claim
According to the listing website, the average price for a home sale in the Bay Area in February was set at 888,000$ in the sector of single-family homes. Despite the overall shutdowns and active pandemics crisis, local agents are reporting offers for starter homes. According to analysts, the reports on the housing market in 2020 are mild when compared to the crisis in 2008. Back in 2008, home prices in the area were driven down by -30%.
The Housing Market Predictions for 2020 by Zillow
Before the outbreak took place, analysts predicted a stable year in the housing market with low mortgage rates and low inventory. However, predictions are changing at large, while Zillow is predicting a drop by -4% in home sale prices in the worst-case scenario. Moreover, home sales should continue to drop as well through 2020 and 2021. The best-case scenario predicts drops from -1% to -2% until summer when buyers could return to the markets.
