To my and many other people surprise, there is for the most part a housing boom taken place during the COVID-19 economy. One of the biggest reasons why housing prices in certain areas like New York, California, Texas, and the Washington D.C., Maryland, and Virginia aka DMV area are constantly increasing. It’s basically because of the lack of available housing/inventory out here. When it comes to the economy within the United States of America, right now it’s very stagnated. Of course, eCommerce businesses, like Amazon, eBay, Shopify, and more are growing tremendously in the COVID-19 economy. Another issue that potential homeowners are facing is that minimal inventory isn’t to the home buyers standards. From the home price ranges to the specific areas that the homes are located etc. And this is definitely a great thing for current homeowners, looking to sell, refinance, or pull equity from their properties. However, economists and other real estate experts are predicting a major slow down in 2021 which would reverse home prices slowly but surely. Another thing to take into consideration is that if there isn’t a federal eviction ban home foreclosures will spiral out of control if the economy doesn’t fully open soon. Realistically eliminating political perspectives, everyone wants the economy to re-open as soon as possible. There are a multitude of companies that may not recover from remaining closed, and that could increase the unemployment rate, which then trickles downs to rental, and mortgage payments.
One of the biggest predictions that economists have made, states that home prices will drop by 6.6 percent by July 2021. One of the very important things for investors, and sellers to take into consideration is that there was a major housing shortage before the COVID-19 lockdown. With national lockdowns enforced, the housing market came to a standstill. With the opening of most states, prices rose even more because of the lack of homes for sale, and a huge appetite for investors, and first time home buyers. I definitely cannot forget to mention today historically low home loan interest rates. The fall season is around the corner, and that is usually the season, with or without COVID-19 of a real estate slow down. One thing is for sure, if the unemployment benefits are not extended for the rest of 2020, then there will be a foreclosure crisis. Possibly a homeless crisis all at the same time. Today society is hoping that not only things get better, pertaining to the COVID-19 epidemic, but we definitely do not want to see a repeat of the 2007 foreclosure crisis.
