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:
States continue to relax containment measures; More than a dozen states let stay at home orders expire and businesses open up in response – Opendoor and Offerpad, to name a few.
More than 30M Americans filed for unemployment due to COVID-19 job losses andconsumer spending has experienced its biggest drop since 1980.
The U.S economy is anticipated to recover slowlyfor many reasons, including:the federal debt level has quadrupled, consumers and businesses are forecasted to reduce spending, and increases in interest rates from the Fed to combat inflation will lead to reduce investments.
Buyers continue to become more virtual in their housing research and buying with a +3% increase in web traffic week-over-week.
At risk markets like Houston are negatively impacted given lower demand, higher competition and volatile oil market.