It has been several months now since the initial outbreak
of COVID-19 in China. The global impact
of this virus is still being written today.
Across borders government leaders are working individually and collectively
to find a way to eradicate this foe.
Thousands of citizens have succumbed to this virus. The economies of the world have moved from
robust and thriving to a stagnated trickle. Many businesses have been forced to
shut their doors to employees and those still functioning work at limited capacity.
The U.S. Housing Market is not immune to the impact of
COVID-19. Although homes are still being
bought and sold; for all practical purposes the market has been put on pause.
Efforts to off-set this pause include a lowering of mortgage
rates and slight price reductions of existing homes on the market. This makes sense since price reductions are
harder to change when there are few transactions. The federal government has implemented a
moratorium on foreclosures and directed mortgage services to offer homeowners
assistance on mortgages backed by Freddie Mac, Fannie Mae or the Federal
Housing Authority.
What will be the “new normal”? No one person has that answer yet, but like
most we are aware that lives have been altered by COVID-19. Here are a few things to consider as you try
to find a new normal for the housing market.
1.
What will be the financial impact on the
U.S. economy in terms of lost wages, lost productivity and lost manpower?
2.
How long will it take to see a full
recovery of the economy and unemployment levels of pre-COVID-19?
3.
How long will the mortgage industry be
able to financially withstand the moratorium and what other tools are available
to safeguard home ownership?
4.
What will be the housing market mindset
post COVID-19? Will buyers be ready to
return to the market once again or will they stand on the sidelines?
All good questions and all that will need answers. Over the upcoming weeks we will all watch the
“new normal” for the U.S. housing market go through a metamorphosis. Like the phoenix emerging from the ashes, the
U.S. housing will rise again. We shall
all watch expectantly!
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