As we entered 2020, we had every reason to believe this would be a fantastic year for home sales. Then COVID-19 struck along with calls to “Cancel 2020” on social media.
Many people who were planning to put their house on the market now wonder, should I sell my house? Here’s what the experts are saying.
Historical Parallels Point to Fast Recovery
As the U.S. and world adapt to social distancing standards, many economists agree that what we’re seeing points toward a faster recovery.
Goldman Sachs is a company that is watching the economic indicators very closely. They see a steep decline to a 15% unemployment rate and a 34% dip in GDP by the end of June.
But they believe this quick decline also points toward a rebound of 19% as soon as October. Like the rest of the country, Goldman originally saw a much longer recession. But as they’ve been able to collect more data, they see a different outcome.
Much of this change in the forecast comes from better than expected federal stimulus packages, and the way industries and citizens are adapting quickly to the changing environment.
Economic optimism is a breath of fresh air. But the question remains, should I sell my house in the current housing market?
How This May Impact Housing
In housing, data points to an artificial decline in demand for homes driven by the fact that it’s simply harder to home-shop when you have to stay-at-home.
When people are comfortable that the places they go are following CDC standards, experts expect home-buying to resume.
“{With} supply-demand imbalance as well as the belief that conventional financing rates will remain very attractive…I believe U.S. home prices are likely to stay flat to modestly higher as we move through the upcoming recession,” Matthew Gardner, Chief Economist, Windermere Real Estate told Market News.
Gay Cororaton, a senior economist and director of housing and commercial research at the National Association of Realtors (NAR) told Lending Tree’s senior reporter Crissinda Ponder, “It’s not a question of slashing your prices; I think what’s really holding back buyers right now is the stay-home/shelter-in-place directive.”
“The market friction is not due to pricing, so lower prices will not necessarily help,” states LendingTree’s chief economist, Tendayi Kapfidze.
But what are some of the numbers driving these expert opinions?
According to NAR data, in March 2020, home sales dropped across the country from February to March. Sales of condos and other smaller communal home types skewed the number lower with an 8.5% decline.
But sales were still up over 2019, suggesting that people want to buy in 2020.
The median existing-home price is also holding steady at $280,000, an 8% increase over 2019. Home inventory has dropped 10% from 2019 because of coronavirus.
But NAR’s Flash Survey found that 93% of home sellers are incorporating more social distancing into their selling strategies, which will give those reluctant home buyers the confidence they need to start buying again.
Should I Sell My House in 2020? Experts Say Yes
Saying the housing market is unpredictable right now would be an understatement, however, there is certainly reason to be optimistic.
2020 may not be going as expected, but real estate and economic experts believe it could still be a great time to sell a house.
HomeGo is still buying homes in the midst of the current pandemic. Our local agents can schedule virtual or in-person walk-throughs and make same-day cash offers on homes in any condition.
Instead of dealing with expensive repairs, marketing, inspection, real estate commissions, and more mortgage payments, in as little as 7 days, you could close your sale to HomeGo and be moving on to your next chapter.
If you’d like to explore this option, schedule to get a no-obligation offer today.
