Experts presume that the U.S. housing bubble was already on its way to bursting before the coronavirus took hold in the United States. Now, with new mandates associated with the coronavirus coupled with record unemployment rates, home sales are declining rapidly, which could lead to the next housing crisis.
It’s not only single-family home buyers who are exiting the market. Companies like Zillow have halted purchasing homes to be sold on their Zillow Offers platform.
According to Capital Economics, we could see a 35% drop in home sales this spring, plunging to their lowest in 29 years.
With already record unemployment rates expected to continue to rise, less and less potential buyers will even consider a home purchase.
“This is bad news for the U.S. housing market as rising unemployment will put off buyers even if mortgage rates remain low. This could eventually lead to lower sales and force sellers to reduce prices, triggering the next U.S. housing market crisis.”