The real estate housing market is going to be one of the most impacted industries in the U.S. with the massive layoffs as businesses were forced to close. Huge housing companies have started to scale down market activities before prices start to plunge.
The COVID-19 outbreak has put a halt in the market’s momentum and might even lead to another price crash and could be the worst since the Great Recession.
2020 U.S. Housing Market Started Strong
In January, home prices rose 3.9% annually in the U.S., says S&P CoreLogic Case-Shiller index. That’s higher than the 3.7% home value growth in December and even toppled 2019’s overall growth of 3.4%.
Needless to say, it was a great start for 2020 as housing prices have accelerated in January more than they did in December. That has been the trend since mid-2019.
However, some experts thought that the good performance of the housing market in January would be the last we see after the coronavirus has caused economic fallout.
There will be around 4% peak-to-trough fall in prices by the first part of 2021 before it flattens out for the rest of the year. There will also be a sharp decline in the housing demand as unemployment rises and the movements are limited due to the imposed community quarantine and stay-at-home orders. Buyers also tend to become unwilling to buy houses which will contribute to the drop of prices.
Housing Market Could Lose About $1.3 Trillion Value
Based on the data gathered by Zillow, U.S. residential houses combined value has increased in 2019 from $1.1 trillion to $33.6 trillion. If the prediction of the drop of home prices by 4% would come true, the housing market could be losing $1.34 trillion by early 2021.
The contributing factors of the crash is also happening. Many Americans are already filing for unemployment benefits and the number has risen to a whopping 6.6 million on March 28.
There is an estimate of 47 million Americans losing jobs brought about by the novel coronavirus pandemic. That’s an alarming 32.1% unemployment rate.
Inevitably, that will result in a drop in the housing demand which translates into a drop in annual sales of about 35% this spring.
Business As Usual For iBuyers
Amid the whirlwind of sudden economic disruptions, iBuyers are still serving its clients with dedication. This rising trend of market players could guarantee a continued business for potential home buyers who are in dire need to move and sellers who need to sell their properties. These companies directly buy homes from individuals in a quick and easy manner. Those who want to sell home fast for cash can contact them online whilst in the comforts of their homes during quarantine.
The convenience they give their clients is very timely and eases the difficulty of the current situation. Experts at Mrs Property Solutions can help you with your concerns and they are the best ones you can talk to if you have lingered on the thought of selling. They offer cash for houses Los Angeles and a fast and seamless transactions. They can also give you an all-cash offer within 24 hours—which is totally for free, fair written, no-obligation offer. They can even close as quickly as 7 days or you are free to choose the date as you would prefer.
What is more convenient with this company is that unlike putting your house in listings—waiting for interested home buyers, making necessary upgrades and fixtures, moving out early just so you could have your home fully prepared for house viewings of prospective buyers—Candid Property Solutions buys your house as is. No need to do anything with it as the company will take care of it. They buy the house, pay you with cash fast, and take care of the rest, so you can use the money to your urgent needs especially in these trying times. The coronavirus may have brought us into very difficult situations but we believe that the housing market will survive and as soon it dissipate, we will be back on our feet doing our usual things and get back to normal the soonest we can.