Real Estate Market 2020 Predictions

I’ve noticed, as I’m sure you have too, that all of the unknowns surrounding Corona Virus (How long will it last? How many people actually have it? When will we know more? When can I leave my house again? ) are creating a lot of anxiety, and rightly so. I keep getting asked about the real estate market and if I think it’s going to crash (I don’t) so I thought I would share what I’m hearing from the experts I’m following.

Brian Buffini is a titan in the world of real estate and he did an interview with Lawrence Yun who is the Chief Economist at the National Association of Realtors. You can listen to the full podcast here.

Here are the quick hits:

• Everything depends on how long the economic shut down related to the Corona Virus lasts.

• If the economic shut down is short, the spring buying season (which is often very busy) will be pushed to late summer and fall.

• Home prices change more slowly than stock prices.

• The housing market is on much stronger footing than it was in 2008. The banking industry has tightened up regulations and there are no underlying sub-prime mortgage issues.

• The housing shortage that has been ongoing will continue into the foreseeable future.

• Home prices have historically risen during recessions.