Home Prices Stable, Interest Rates Low During Crisis
Posted by Richard on June 4, 2020
With quarantine orders expected to ease in June, housing prices remain reasonable and interest rates remain historically low, making refinancing attractive.
Meanwhile, consumers might be looking for new lifestyles. The current virus crisis appears to have had some impact on home buying decisions.
Real estate brokerage CEO Glenn Kelman told CNBC demand for more rural homes is stronger than demand for urban homes. This is a shift, possibly a psychological change, in what consumers are looking for in a house.
Home prices steady
Although unemployment has soared, home prices have remained steady. That’s because potential sellers have put off their plans, making fewer homes available to buy. Buying demand, while it has dropped by 20 percent, is still strong compared to the decline in sellers.
Home buyers today will find reasonable home prices, but tighter lending standards.
According to a study by Zillow, in previous periods of virus outbreaks home sales dropped but prices were stable with slight decreases. In the current crisis, demand for housing appears ready to return, especially if sellers come onto the market.
The virus crisis has pushed mortgage rates lower.
Rates are down to about 3.8 percent, holding steady throughout the crisis, the New York Times reports. This will make refinancing a great option.