Now that the spring homebuying season is upon us, many would-be borrowers will have to take a different approach to navigate through the season with some states still enforcing stay-at-home measures while social distancing guidelines are in effect in many areas throughout the country.
In early February, the spring buying season was shaping up to be strong due to the solid U.S. economy and record low unemployment. But all that changed mid-March when the COVID-19 outbreak began. This shuttered businesses and caused job losses to hit 33 million in just seven weeks while most of the nation was under lockdown.
Since lockdowns are preventing buyers from viewing homes on the market in some states and social distancing remains, many sellers are finding ways to move forward with homes they’ve listed. While there has been a significant drop in available homes, sellers and real estate agents are taking precautions in order to encourage buyers to consider the homes that are available. There has been a continued rise in virtual meetings and sales finalizations, and the use of electronic document-signing applications is increasing as a means to continue taking action in today’s market.
“Home sales will decline this spring season because of unique economic and social consequences resulting from the coronavirus outbreak, but much of the activity looks to reappear later in the year,” said NAR Chief Economist Lawrence Yun. “Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with less immediate concerns over foreclosures.”
While changes due to COVID-19 are temporary, industry experts remain hopeful. With a strong underlying market, experts anticipate inventory levels, industry rates, and bank liquidity will rebound to levels near where they were prior to the COVID-19 pandemic offering the return of a steady market.
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
