The disruption of the coronavirus pandemic caused pending home sales to fall in March. The losses are expected to reverberate through the rest of 2020, according to the National Association of Realtors.
The Pending Home Sales Index, which sits at a baseline of 100, plummeted 20.8% to 88.2 last month. The index had hit a
"The housing market is temporarily grappling with the
Any recovery later in the year won't salvage the loss of the normally strong spring home-buying season, Yun said, adding that he anticipates overall sales volume declining 14% annually.
Quickly adapting to technology and virtual tools could help to curb lost business. Out of 2,915 NAR members surveyed on April 20, 58% said buyers used virtual tours and 43% reported buyers used e-closings. But only 27% of Realtors could complete their
The Biden administration once again extended the pause on student loan payments enacted to help borrowers during the COVID-19 pandemic, this time through the end of August.
The two states' combined plans amount to over $1.5 billion of the Homeowner Assistance Fund included within the American Rescue Plan Act , which was passed a year ago.
An uptick in pandemic-related payment suspensions reflecting new or restarted plan activity previously occurred as the omicron variant spread, but activity has since subsided.
"As consumers become more
Regionally, COVID-19 hit pending home sales in the West hardest, dropping the PHSI 26.8% to 71.4, down 21.5% from the year prior. The Midwest's index score was 85.6, down 12.4% year-over-year. The South fell 17.8% from March 2019, but its index of 103.7 stands above the others. The Northeast's PHSI decreased to 82.3, an annual drop of 11%.
Prices, however, remain impervious to the impact of the pandemic, held up by the enduring lack of supply.
"In fact, due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high," Yun said. "I project the national median home price to increase 1.3% for the year, though there will be local market variations and the upper-end market will likely experience a reduction in home price."
