The pandemic outbreak of COVID-19 has placed the housing market on a halt in the US in the first quarter of 2020, while the drops in sales and listings were also making historical lows in mid-April. With the latest report created by Realtor.com, there are indicators that the market of housing in the US could be heading to recovery at the beginning of summer. Based on the metrics collected by Realtor in May 2020, economists claim that the market might be in for a rebound with the upcoming summer 2020.
Table of Contents
The Housing Market Might Be Heading for a Rebound in Summer
According to Realtor.com, the housing market is preparing for a shift. During this spring, the housing market has shown declines which surpassed previous lows, resembling the crisis of 2008. According to the Chief economist at Realtor, Danielle Hale, who spoked for Yahoo Finance, there are a lot of technical indicators hinting that sales that should have happened in spring, are likely to take place in summer. That way, the reports for the housing market in terms of sales and the number of listings in the market could significantly improve.
Inventory Down by Over 44% with Mid-April
As home sellers are relisting their real estate, the inventory in the housing market dropped by over -44% in April, while the prices for houses increased as a consequence. Listings in May were down by -29% with a drop of -20% in the last week of May 2020. This case indicates that inventory and sales could significantly improve during the summer.
Housing Prices on the Rise
Even though home buyers are headed for an increased number of homes in the market with the arrival of summer, buyers will need to prepare more money as the prices are rising. In May 2020, there is a recorded increase of over 3% in comparison to the prices of homes in the same month the last year. Economists expect the prices to rise further during summer.
