Without a doubt, the COVID-19 (coronavirus) pandemic has impacted every part of the economy. This is a dangerous virus and has left many parts of the country on lockdown orders to prevent it from spreading rapidly. The question many people are asking is how much the real estate is going to be impacted by the virus as well.
People Are Not Looking For Houses As Often
One of the biggest impacts of coronavirus is that some people simply aren’t out looking for houses. Stay at home orders and social distancing measures have prevented people from touring homes that they may be interested in buying and sellers postponing the listing of their home for sale.
In some parts of the country, the new listings available for homes have dropped drastically. This includes areas of the country that have been hit the hardest by the virus such as New York and California. Even web traffic to various real estate sites such as Zillow has dropped as well. Without a doubt, the rate of weekly mortgage applications has been impacted as well.
The Impact Of International Trade
In addition, for those who want to move, they might find a slowdown in international shipping and trade challenging. Many of the items that people need to furnish a home such as couches, tables, stoves, washers, dryers, ovens, and more are made overseas. Many home building materials are also manufactured and shipped from abroad. This creates a challenge for home builders and remodelers to effectively source the materials they need. It may take some time for the supply chain to reset and catch up with pent up demand.
The Response Of The Federal Government
Right now, those who currently own homes can find some relief from monthly mortgage payments if they are struggling financially. The government has put a moratorium in place on foreclosures. They have also told mortgage servicers to offer forebearance options for many mortgages. While these grace measures will expire eventually, they may be helpful for the time being.
Looking Forward
The impact of COVID-19 on the nation’s real estate market is already apparent; however, the real question is how long the market is going to take to recover. The most recent report from National Association of Realtors states that 2020 is forecast for a 15% overall decline in the real estate industry. Many analysts believe that the real estate industry will be one of the fastest segments to recover across the country. Once the market does open up, the demand should increase quickly.
Many millennials are reaching the age where they are thinking about buying homes for the first time. It turns out that many members of this generation are finding this process challenging. Even though the housing market is great for those looking to buy, surveys indicate that this generation also finds the process overwhelming.
You might have gotten used to the flexibility of renting. You probably like not having to worry about repair costs and you likely enjoy the ability to pack up and move in short order. On the other hand, you are probably tired of throwing money away and are ready to build equity in a home. While the opportunity to become a homeowner is undeniably attractive, how do you know that you are ready to take on this responsibility? There are a few signs to note.
Owning a house comes with major responsibilities and one of the most important is routine maintenance. While many people like to skip routine maintenance in an effort to save money, the reality is that these routine maintenance is going to save people down the road. The reality is that maintenance is a homeowner’s first line of defense when it comes to protecting their most valuable investment, which is their home.
Last week’s economic news included readings on inflation, retail sales, and a speech by Federal Reserve Chair Jerome Powell. The University of Michigan released a preliminary reading of its Consumer Sentiment Survey; weekly readings on mortgage rates and initial jobless claims were also released.
A “buyer’s market” happens when people looking to buy a home have a stronger bargaining position than the sellers have. In a classic economic sense, a buyer’s market occurs when the supply of homes available for sale exceeds the demand for them. However, other things in real estate create a buyer’s market.
Attractive landscaping is one of the first things that potential home buyers notice. They may see the landscaping in the photos of a home for sale or may even do a physical drive-by. The view of the property from the street is called “curb appeal.” It is important to make this be as nice as possible.
Once you’ve accepted an offer on your house, the next thing you should do is schedule a moving company. The earlier you plan for the moving company, the more time you’ll have to research your options and ensure that you can reserve the date you need. 
In the wake of the recent news reports, you might be looking for ways to make your home safer. Some of the most common accidents and events that take place in homes include poisoning events, falls, and even burglaries. The good news is that there are ways to improve the safety of your home. You might even be rewarded with a lower home insurance premium!
Last week’s economic releases included readings on public and private sector employment, the national unemployment rate.