Will the Housing Market Bounce Back After the Coronavirus?
We are just half way through the month of April, but as buyer traffic dwindles and layoffs abound, it already feels like we’ve had a year’s worth of stress. Good news? The full effect of the coronavirus on the housing market will not last long, according to Sam Khater, Freddie Mac’s chief economist. Although it will take a long time to fully recover, the economist says that much of the damage will be contained to the first half of 2020, and after that, the housing market will start its recovery, thanks to low mortgage interest rates, low inventory, and an expected increase in demand.
The brunt of the coronavirus' impact on the housing market will hit in the first half of 2020, with a likely recovery and pick up in home sales in the second half, according to Freddie Mac.
"Although the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year," Sam Khater, Freddie Mac's chief economist, said in a press release. "Going forward, we should see a recovery starting in the second half of 2020, though it will take some time for the economy to fully bounce back."