New home sales have taken a dive to historic lows in March, as lockdown measures and stay-at-home orders have been put in place across the US. However, the problem does not stop there: now, according to recent data released by the National Association of Realtors, the pending home sales category has also suffered much the same downward-spiraling fate.
Prior to the pandemic, the housing market was already in the midst of a property shortage. Now, amid the coronavirus fiasco many potential sellers have decided to de-list their property and leave the housing market altogether. This has led to a 20.8% drop in pending home sales – the largest drop since 2011.
Property sellers and potential buyers have instead opted to stay at home and avoid unnecessary interactions, leaving the housing market desolate and at a standstill. Some have resorted to virtual property showings and online mortgage applications, but that most likely is not going to be enough to get the market back to equilibrium.
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2 Responses
Only 2011 levels?
“But housing prices never go down” – every millenial