The coronavirus has made a significant impact on the housing market for March, causing the pending home sales to drop 20.8% to an index of 88.2. That’s a drastic change from February’s index of 111.5. Due to the COVID-19 outbreak, the year-over-year contract signings have also decreased by 16.3%. New listings and contracts are being put on hold for the time being.
The National Association of Realtors® chief economist Lawrence Yun projects, “As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.” Yun believes that the market will make a “bounce-back” later this year.
As the pandemic still causes major disruption, the use of technology such as virtual tours and e-signings may ease the process while keeping everyone connected. Making it a great resource for buyers and sellers.
Copyright ©2020 “NAR Calls Housing Market Slump Temporary as Pending Home Sales Fall in March” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. April 29, 2020, https://www.nar.realtor/newsroom/nar-calls-housing-market-slump-temporary-as-pending-home-sales-fall-in-march