In March, as the national economy was shut down due to the coronavirus, many predicted that the real estate market would face a major collapse. Some forecasts required a 15-20% decrease in transactions. However, six months later, it appears that the housing market has fully recovered.
Mark Fleming, Chief Economist at First American, announced last week:
“Since hitting a low point during the early stages of the pandemic, the only major industry showing immunity to the economic effects of the coronavirus is housing. Residence experienced a strong V-shaped recovery and now exceeds pre-pandemic levels. “
La Economic & Strategic Research Group at Fannie Mae updated its forecast for home sales last week:
“Housing data over the past month has continued to show up strong V-shaped bounce, helping to drive the wider economy. Existing home sales have jumped to a rate not seen since 2006 … We much upgraded our forecasts for both new and existing home sales. By 2020, total home sales are now expected to be 1.3% higher than in 2019. “
La National Association of Real Estate Agents (NAR) agrees. In their last Awaiting Sales Report, NAR shared projections of Chief Economist Lawrence Yun:
“Yun predicts that existing home sales will grow to 5.8 million in the second half. That expected rebound would bring the year-on-year level of existing home sales to 5.4 million. a gain of 1.1% compared to 2019. “
De Yun forecast for 2021 was even more optimistic, stating, “Home sales will grow again next year, increasing between 8% – 12%.”
The housing market has returned roaring and looks as if it will even surpass last year’s success.
Frank Martell, President and CEO of CoreLogic, hit the nail on the head when he said, “On an overall level, the housing economy remains solid despite the shock and respect of the pandemic.”
Content previously posted in Keep Current Things