The good news for home builders is that many of the people who wanted to buy a home in spring still need to move at some point. The bad news is it could be a longer road to recovery than first expected, according to a Zillow Home Price Expectations Survey sponsored by Zillow and conducted by Pulse Economics LLC. Out of the more than 100 economists, investment strategists, and real estate experts, 41 percent predict that the recovery will be U-shaped with the recession lasting several quarters. The missing spring home sales will come back, but when is up for debate. Some said that the next spring buying season will double up on sales, but a majority responded that the recovery will be spread out over the coming months.
When coronavirus turned the economy upside down, anxiety and uncertainty about the future initially kept many homebuyers and sellers at bay. Inventory and sales have picked up over the past month, though, and a panel of housing experts and economists say the U.S. housing market hasn’t lost those missing springtime transactions for good.
The Zillow Home Price Expectations Survey, sponsored by Zillow and conducted quarterly by Pulsenomics LLC, asks more than 100 economists, investment strategists and real estate experts for their predictions about the U.S. housing market. The Q2 survey focused on the impact of coronavirus on the market and expected recovery patterns, and also asked for predictions on how the pandemic will shape home-buying decisions in the future.
Coronavirus and subsequent stay-at-home orders resulted in lower-than-expected transaction volume during what was primed to be a busy spring home shopping season. While it was thought the spring buying season could shift to the fall, the pandemic effects are poised to continue into summer and only 10% of the survey panelists said they believe those transactions will materialize later in 2020. More than twice as many experts (22%) said they expect a “double up” during next spring’s shopping season, and the vast majority predicted that recovery will be spread out over the next several years.
Related Stories
Housing Markets
This City Dodged the 2008 Housing Market Crash, but It’s Bottoming Out in a 2023 Correction
The Lone Star State bypassed a 2008 home price crash, but it's now caught in the middle of a 2023 market correction
Market Data + Trends
Why a Growing Number of Americans Are Worried About a 2023 Housing Crash
A recent survey reveals mounting concerns about a 2023 housing crash, but housing industry experts aren't so worried
New-Construction Projects
Why New Rental Supply May Be Key to Lowering Mortgage Rates
Shelter inflation is taking the U.S. economy by storm. One way to lower housing costs is by building more apartments