With so many unknowns during this pandemic, many are wondering what the long-term financial impact will be on the economy and specifically the real estate market. A bit of encouraging news from the National Association of Realtors sheds light on a short-lived recession followed by a quick rebound. A 2.4% rise in pending home sales last month indicates a strong market heading into the Coronavirus outbreak. Though sales are expected to slow in the coming weeks, technology has helped keep the market moving along.
“Once this predicament is behind us, and the habit of social distancing is respected, I’m encouraged there will be continued home transactions with more virtual tours, electronic signatures, and external home appraisals,” said Lawrence Yun, chief economist for the National Association of Realtors.
According to NAR, studies based on previous widespread illness outbreaks have shown that the real-estate industry has historically rebounded fairly well in areas that were hard hit. Many of the home sales that are likely to be missed during the first part of 2020 may simply be pushed into late summer and autumn parts of the year.
According to Steve Mallett, president of Dripping Springs Elite Real Estate Professionals, the local real estate market will feel a short term slowing, but prices should not be impacted.
“We are still a great place to live and people still want to move here. In the next few weeks, we should see a return to a more normal market, and we all believe that we’ll have another busy selling season.”
There was more encouraging news from the Dow Jones Industrial Average and the S&P 500. Both were up in Monday morning trading as investors were upbeat on efforts to contain the coronavirus—welcome signs that the market will be healthy once more, so Americans can focus on doing the same.
“This is a good reminder that we need to always be looking out for our families, friends and neighbors,” said Mallett. “Dripping Springs is stepping up to do just that.”