In January 2020, we saw the highest number of new home sales since January 2007, immediately followed by a report Tuesday that sales of newly constructed homes dropped 4.4% in February.
Even though new home sales dropped, overall sales volume was still relatively high before the COVID-19 outbreak.
With COVID-19 becoming more prevalent, and government stay-at-home orders being put into place across the country, home sales are likely to be negatively impacted.
With so many people losing jobs and/or money in the stock market, people’s confidence in making large purchases has dropped dramatically. However, something to note is that shares of PulteGroup, LGI Homes, and Lennar Corp. all rose Wednesday morning.
“A combination of factors has buoyed home builders in recent months…But the good times aren’t expected to keep on rolling.”