A majority of housing experts said activity in the housing market will return gradually.

Despite sending unemployment skyrocketing, the COVID-19 pandemic is likely to have little impact on home prices this year, according to a Reuters poll conducted recently. Home prices are expected to outperform consumer prices with a 3.0% increase this year, according to the poll. This is only a slight decrease in the 3.4% rise predicted three months ago, meaning while the economy has suffered major impacts of the COVID-19 pandemic, the housing market appears remarkably immune. “The U.S. housing market, which was at the epicenter of the previous financial crisis that led to a global recession, is expected to remain a bright spot amid a sharp downturn as the coronavirus pandemic continues to wreak economic havoc,” Reuters reported. Reuters conducted its survey of 40 housing experts between June 9 and June 19. While the spring housing market did experience a dip, housing demand “is coming back in dramatic fashion,” Brad Hunter, Managing Director at RCLCO, a real estate advisory firm told Reuters. A majority of those surveyed, 60%, said activity in the housing market will return gradually. Around one-quarter said they expect activity to rebound quickly. The main cause for concern in the housing market is clearly unemployment. Three-quarters of the housing experts surveyed said unemployment is the No. 1 threat to the housing market in the next year. Other experts were concerned with the lack of affordable housing supply and tight lending.

Source: DSNews