Are You Missing Out if You Don't Buy Now?

Housing Market Group economists predict that home prices will most likely decrease between 2-3% through the end of the year from pre-COVID levels and slowly recover by late 2021.
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CENTRAL DISTRICT, Hong Kong - June 23, 2020 - PRLog -- The predictions include two other possible scenarios: Prices decline as much as 4% and take longer to recover, or as little as 1% and recover more quickly. For example, a home priced at $250,000 in February 2020 could be priced between $2,500 and $10,000 lower, at least through the end of the year, according to the forecast.

According to Housing Market Group economists, the current environment poses both opportunities and challenges.

New opportunities for buyers might be out there

If demand stays strong and the crisis passes relatively quickly — both big "ifs" at this moment — then we can probably expect price growth to accelerate like it was earlier this year. If that's the case, it might be a good time for some buyers in some markets to get ahead of any growth in home prices. Other factors that could help buyers:

Mortgage interest rates are very low, which has the potential to significantly boost your buying power.
There could be less competition for the still-limited pool of homes for sale, with many people putting plans on hold and staying home.
Sellers may be more flexible on pricing and/or timing in order to close a sale, especially if letting their home stay on the market will cost them or delay their own plans.

But the challenges could be daunting

Even with the best forecasting, we can't know for sure how things will unfold over the coming months. If the crisis persists and social-distancing and other behaviors last through the bulk of the year, home prices may fall somewhat in response to the lack of demand from buyers.

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