In this segment of our weekly Outlook Webinar: COVID-19 Update, Senior Managing Principal, Tim Sullivan, and Chief Economist, Ali Wolf, provide real-time updates on how the coronavirus pandemic impacts the housing industry.
Key economic and industry changes discussed in the presentation include:
More states are changing their containment measures; Noteworthily, Georgia has permitted non essential businesses to reopen, Texas in their phase one of reopening is allowing select non essential business to re-open at 25% capacity and Washington is allowing construction businesses to operate.
The mortgage market is experiencing several shifts given COVID: Mortgage sales are still down but the rate of of decline is slowing, realtors report there is a 76%decline in home buyer interest and Home Buyers continue to expect lower prices.
The American economy is forecasted to open up in May, but there are several hurdles that must be overcome for full operation: Massive layoffs by private companies and state agencies – more expected later this year as well – lower business investments being made by executives, consumer fear and and supply chain limitations, to name a few.
Several trends impacting the Housing Market reflected in survey data: Nearly 50% of builders reported better net sales week over week, 88% of builders continue to keep base prices flat week-over-week and 54% of Homebuilders are selectively moving forward with new lot/land acquisition.