Corona virus lock down did not kill housing market, time pricing and market trend did.
Some people think they should wait to buy until home prices go back down; however, it is nearly impossible to time pricing in the housing market in order to buy at the bottom of the market trend.
Jeff Rose; a certified financial planner, an author, a blogger, and Iraqi combat veteran reported for Forbes on the 7th of July 2020.
The fact that the housing market successfully weathered the corona virus and the shutdown that followed are a strong indication of positive price action going forward.
When the corona virus first began making the news in February and March there were dire predictions of the impact it would have on the housing market. Speculation abounded that both sales and prices would collapse in the face of a crushing recession and the uncertainty it would bring.
But we’re now in the middle of 2020, and not only is the housing market showing signs of a recovery, but a strong one at that.
There’s been a lot of analysis and debate on exactly where the stock market is headed in the post-COVID-19 environment. But much less attention has been focused on the housing market. Or more precisely, on whether now is the right time to buy a house.
On the plus side, house prices have held steady and even increased slightly in the face of the economic shutdown that followed the pandemic. And interest rates are near all-time lows and could potentially go lower still.
But on the negative side, employment though recovering since May remains a question mark. And with housing inventory remaining tight with tens of thousands of homes having been withdrawn from the market during the shutdown, prices may go even higher, lowering affordability.
Is now the right time to buy a home? Let’s consider both possibilities.
Any thoughts of bargain-hunting in the aftermath of the corona virus shutdown have proven to be a losing strategy. While it seemed likely that house prices would decline due to lack of sales activity, the opposite has occurred.
According to recent statistics issued by Realtor.com, median listing prices are 5.6% higher than one year ago, and more than a full percentage point above the levels just before the COVID pandemic shut down the economy.
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