The Housing Market Is Coming Back

balconies of an apartment building
real-trends-icon

FIRST PERSON / COVID-19 RECOVERY

All the signs are showing that the housing market is making a comeback.

As of May, we already see signs that housing will be one of the economy’s sectors that lead the way back. Looking at the earliest indicator—showing homes for sale—leads us to conclude that families’ desire to adapt housing to their particular needs remains unwavering.

Thanks to ShowingTime, we can see the downward and upward progression of showings in the past several months. We looked at the results for Connecticut, Florida, Texas, Illinois, Colorado, and California. In each case, showings bottomed out in late March to early April and moved up sharply through the rest of the month. Some are only slightly below or even from where they were a year ago.

This won’t help closings in May, which will likely be the trough for housing sales, or June, which may be relatively anemic. But, the significant increase in showings bodes well for July and beyond. This still doesn’t address the low inventory issue that we’ve been dealing with for the past four to five years in most markets. Many brokerage firms, MLSs, and state and local associations of Realtors® report a rise in the number of sellers taking their homes off the market due to fears about people being in their homes or a sense that this may not be the best time to sell a home. Both of these issues will likely fade somewhat by summer.

Let’s remember some basics. Virtually every study about consumer attitudes about homeownership remains positive whether the source of the study is an industry group or some outside survey or research firm. Generation Z, Millennials, Gen-Xers, and Boomers still desire to own a home. Secondly, based on the 2018 Harris Insights/REAL Trends/California Realtors® study, consumers think using a Realtor is smart. Some 90% reported they used a Realtor to purchase or sell a home in 2018 (up from 85% from the same research in 2014), and 92% of Millennials and Gen-X said they used a Realtor.

These fundamentals seem to remain intact. Even amid the challenges of Covid-19 and the shutdown of the economy, families were lining up to look at homes for sale. While nearly 20% of American workers are out of work as of this writing, it also means that 80% of Americans are still at work. As the economy recovers from what will be the worst quarter in U.S. economic history, more consumers will be ready to buy housing that fits their needs as the year goes on.

real-trends-icon

This article originally appeared in the June 2020 issue of the REAL Trends Newsletter. It is reprinted with permission of REAL Trends, Inc. Copyright © 2020. To read the rest of this issue & more, please visit our Real Trends page online.

Comment

  1. RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
    RadEditor's components - toolbar, content area, modes and modules
       
    Toolbar's wrapper 
     
    Content area wrapper
    RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
    It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
    Editor Mode buttonsStatistics moduleEditor resizer
      
    RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.
       




GET THE APP!




© 2019 Washington REALTORS® - All rights reserved. Articles found on the Washington REALTORS® website are intended for Washington REALTOR® members. None of the information contained herein constitutes legal counsel. Opinions expressed in the articles are those of the contributors. If you are a Washington REALTORS® member and have questions about reprint rights, RE Magazine or WR app content, please contact Cara McNeil at (360) 943-3100 x 126 or email cara.mcneil@warealtor.org



You might also be interested in...