Is The Worst Over For The Residential Real Estate Market Amid The COVID-19 Pandemic?

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The coronavirus has been battering the economy for months. Not only did it cause a stock market crash, but it has also forced millions of Americans out of a job as orders to socially distance have made it impossible for many businesses to safely stay open. In fact, there's talk that the current crisis will spur a full-blown recession that takes the country months, or even years, to recover from.

But what does this mean for the U.S. housing market? Will it suffer a similar fate? Or might it escape COVID-19's impact to some degree?

The coronavirus crisis hit residential real estate right before the start of its typically busy spring season, but analysts and agents around the country are saying there are signs that the U.S. housing market could already be on the upswing.

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Like nearly every facet of the U.S. economy, real estate took a hit from the pandemic with home purchase applications plunging and various market gauges, like the NAHB/Wells Fargo Housing Market Index and Fannie Mae’s Home Purchase Sentiment Index, hitting historically low levels.

In areas of high demand, homeowners may not see their property values go down at all. And with mortgage rates being so low, prospective buyers whose income doesn't take a major hit in the coming months may try to capitalize on that opportunity by purchasing property sooner rather than later. After all, real estate has made more people wealthy than any other industry, so this is only natural. Get enough interested buyers, and suddenly, that demand alone can help ensure that should you decide to sell your home, you'll command a respectable price for it.

Another thing: Zillow actually did a study on the impact of previous pandemics on housing markets, and one interesting thing it found is that home prices largely held steady or actually had minor upswings. Why? Because during those times, there were fewer transactions, and as such, not many homeowners who had to sell at a loss.

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-Nico Roensch - Realtor at Rieckmann Real Estate, Inc. - Fox Valley, WI

©2020 by Nico Roensch Real Estate