We were all set to usher in a successful spring homebuying season with builder confidence soaring, buyer demand strong, and interest rates low. But as they say, the only constant is change, and this shift in direction for the housing market does not appear to be working in the housing industry’s favor—even with rock-bottom mortgage rates. The social disruption due to the coronavirus is a necessary step to try and slow the spread of the virus so the healthcare facilities can keep up, but experts believe that the fallout from public fear and social distancing will put a damper on the upcoming buying boom we had been hoping to see. Still, they say the housing market will not crash as it did in the Great Recession as the market now has high demand and low inventory.
Kids furloughed from school, bars and restaurants closed, and people told to stay at home except for essential errands—the coronavirus pandemic has already upended life as most Americans know it. Now it's expected to turn the typically busy spring home-buying season on its head as well.
Despite the extremely low mortgage interest rates, the nation could be in for a rocky home-buying season. A recession triggered by COVID-19 appears to be on the way, and the stock market has plummeted, giving many buyers pause. There are also likely to be fewer homes on the market, longer closing times, and plenty of unanticipated delays in the coming weeks, say experts.