Housing Market Recovery May Be W-Shaped. What Does That Mean?
Though the housing industry appears to be on the upswing again, economists at Realtor.com warn that recovery may look more like a “W” than a “V” or a “U.” Home sales may increase through the summer, but if the projected winter spike in coronavirus infections hits, the country’s housing markets will likely take another hit. And even during the times when purchasing activity is increasing, Realtor.com’s 2020 forecast says that potential homebuyers will face challenges such as tightening lending standards or unexpected unemployment.
The rebound of the U.S. housing market will not look like a “V” or a “U.” Rather it would be a “W,” according to the updated 2020 forecast of real estate listings website, realtor.com.
According to the company’s economics team, national home sales will improve in July, August and September, largely driven by demand from millennial shoppers and transactions in secondary markets, before they decrease again due to a projected winter spike in coronavirus infections.
“As cities and states begin the slow process of reopening, we’re going to see a see-saw recovery with ups and downs that will favor the nation’s secondary markets in the short-term,” said realtor.com Chief Economist Danielle Hale.