The global coronavirus pandemic has gripped the country as few other crises have in our nation’s history. There are now over 1.2 million cases in the US and at least 71,000 people who have died. The outbreak of the virus has halted business as usual and has proved devastating to several industries. The housing market in the country was also hit badly during the second half of March; Google Trend data showed a drop of 23 percent in real-estate related searches from March 6 to March 13.
However, recent developments may indicate the housing market is back on the upswing. Here’s what you need to know.
Listings are Trending Upward Again
At the beginning of March, new listings were up 14 percent across the country. However, as the month progressed, it all slowed down to a trickle. That trend seems to have changed as a Zillow Real Estate Market report released at the tail end of April shows. The report looked at daily new active listings, daily new pending listings, and daily median list price. According to the findings, new listings were down 43.8 percent year over year, but that changed when they began to trend upwards again and were only down 37.7 percent year over year by April 19.
Overvalued Housing Markets are Experiencing Price Dips
According to the analysts at Fitch Ratings, the end of 2019 saw US home values overvalued by 1.5 percent when compared with their economic underpinnings. Due to the temporary drop in demand and lower home price growth caused by the pandemic, housing markets with high overvaluations are at a greater risk of price reversals.
Mortgage Rates Have Been Pushed Lower
The Federal Reserve implemented two emergency interest rate cuts during the pandemic that brought the yield on Treasury bonds to nearly 0 percent. The New York Times reported that the normal inverse relationship between bonds and stocks hasn’t held as strongly as it has historically, and mortgage rates have continued to remain low throughout the pandemic.
Mortgage rates are now down to about 3.8 percent and are remaining steady despite investor uncertainty in the stock market.
If you’re considering buying or selling a home in Fayetteville or Fort Bragg, NC, look no further. I’m Phillip Fehler, an esteemed real estate broker with Fathom Realty. My expert realty services and vast experience of the local housing markets in the areas will ensure you get great deals. Get in touch for more information.