The coronavirus pandemic cancelled spring break vacations, shut down spring semesters, and now it seems that it will force the spring buying season back into hibernation. As American’s attention understandably turns to the swirling economic uncertainty, health concerns, and unemployment fears, home sales could fall by 35 percent annually this spring, according to a new analysis by Capital Economics. Though home prices are not expected to fall thanks to low housing inventory, experts still expect a slow buying season as homebuyer and seller caution increases.
As Americans sit at home watching the value of their retirement funds crater, it is no surprise the spring housing market is about to crater as well.
Home sales could fall by 35% annually this spring, compared with the last quarter of 2019, according to new analysis by Capital Economics. That would mean total home sales of around 4 million annualized, the lowest since the start of 1991.
“Increasingly restrictive measures on people’s movement, and an imminent surge in unemployment,” are the key reasons, according to Matthew Pointon, a property economist at Capital Economics.
