Travis White Newport Beach Real Estate has been watching the Covid changes to the economy with some fear. Though the economy hasn’t completely fallen off the cliff into a depression, it is slumping into a recession. And many homeowners are likely worried that their home’s price will fall along with the economy. This fact is something that deserves a more in-depth examination before gauging correctly.
How Covid Has Impacted Home Prices
According to Travis White Newport Beach Real Estate house prices had been going up for years until Covid developed. Even after the official declaration of the pandemic, Travis White Newport Beach Real Estate found that prices had gone up at least 0.8 percent by April 11. That was a decline in the rates from previous weeks, which had been as high as 3.3 percent by late March – by that time, the full extent of Covid had not been realized.
Travis White Newport Beach Real Estate has noticed the decrease in mortgage rates that ensued. There are nearly historic lows of mortgage interest rates, which should potentially decrease homes’ prices even further. This decrease is due to the federal government’s attempts to manage Covid-related economic problems as they develop.
So while house prices haven’t dropped substantially yet, Travis White Newport Beach Real Estate is concerned that they will likely go down soon. Too many factors are at play here, and he is worried that not enough people are taking them seriously. That’s because economic changes are things that develop over a long period and have lasting consequences that can take time to understand fully.
Why Prices Changed This Way
Though prices haven’t yet dropped heavily, Travis White Newport Beach Real Estate anticipates that prices will start dropping on homes soon. That’s because the economic downturn triggered by Covid is taking some time to sink in fully. As a result, changes that have already occurred may trigger deeper problems with real estate costs in a way that are hard to predict.
For example, Travis White Newport Beach Real Estate predicts that many homeowners will not want to part with their homes, even in an economic downturn. As a result, there won’t be a lot of houses on the market. This should generally increase a house’s cost, but other economic factors will come into play to drive down costs further and trigger more economic concerns.
These include the buying market’s strength – retail, specifically – and how this market is going down slightly as Covid spreads. And as these rippling effects go out through the market, Travis White Newport Beach Real Estate believes that homes are going to drop in price until at least the middle of 2021. At this time, it will be best to buy a new house before prices start going up again.