As global society tentatively emerges from lockdown, many are pondering over the trajectory of the housing market. Will there be a surge in property listings as sellers come out of their social-distancing hibernation? Will prospective buyers take the plunge amidst persistent concerns of an economic downturn? You might have your own set of inquiries as well. The future of the housing market for the rest of 2020 remains nebulous. However, we have gathered insights from some credible voices to give you a glimpse of what might be in store.
Dave Ramsey, Financial Management Guru DaveRamsey.com Over 14 million people regularly tune into The Dave Ramsey Show every week, testament to the impact of his financial planning strategies. When the faint whispers of the coronavirus pandemic turned into an alarming reality, housing market speculation surged. This already capricious industry found itself grappling with one of the most potent health and financial crises to date. We are still to fully understand the enduring economic fallout of the pandemic, yet some specialists are starting to form predictions. In a recent blog, Ramsey accentuated the robustness of the pre-pandemic market, noting that existing-home sales in February 2020 were the strongest since 2007. Propelled by record low interest rates, the market started the year on solid footing. The looming question is whether this vigor will persist. Ramsey predicts that buyers will outnumber sellers this summer, a boon for those who held back on listing during the pandemic. Consequently, buyers should seek out experienced real estate agents to help traverse this rapidly shifting landscape. In essence: The market's vitality at 2020's onset may well extend throughout the year, with trends favoring sellers.
Ellen Paris, Real Estate Journalist Featured on Forbes.com Ellen Paris has built a formidable portfolio over 25 years covering both residential and commercial real estate, with her work featured in the likes of Entrepreneur, Washington Times, Kiplinger Personal Finance, and more. It's safe to say none of us anticipated the market shifts that a global pandemic would introduce back in December 2019. In her May 2020 piece, Paris touches on numerous potential disruptors to the market, including lingering post-pandemic health anxieties, a shaky global economy, and the impending presidential election. Given a 45 percent year-over-year drop in new homes listed in April, Paris's forecast aligns with Ramsey's: Sellers can expect a short-term spike in sales by late summer, but the urgency will likely wane by Q4. Those buyers who delayed their purchase and families needing to finalize a home before the new school year will probably dominate the market for now, until it begins to plateau. Paris also remarks on shifts in buyer preferences regarding location and the increasing demand for home office space. In a nutshell: The housing market will see a fleeting surge in buying interest towards summer's end.
Bill Conerly, Economist Featured on Forbes.com Bill Conerly, a seasoned business leader, economist, and the longest-serving member of the Oregon Governor's Council of Economic Advisors, brings a wealth of knowledge and experience. His stance, like Ramsey and Paris, indicates a temporary market upturn in the summer, followed by a slower pace in the chillier months, a pattern consistent with any non-pandemic year. The difference this year, Conerly suggests, lies in housing prices. Despite the temporary standstill in the housing market, Conerly predicts that housing prices will remain stable for the rest of 2020. He opines that the market's transient behavior won't substantially alter housing prices. Although a few desperate sellers might offer discounts to attract buyers, most of the summer market will consist of those who chose to wait. Moreover, those entering the market are less likely to be among the 15% of Americans recently out of work. In brief: Expect housing prices to hold steady for the rest of the year. A resurgence of the virus could pose challenges as the weather cools.
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