Experts anticipate many homeowners affected by the coronavirus pandemic to put their houses on the market causing an excess supply of homes for sale.
They also believe that home prices will suffer as a result of too many properties for sale and not enough eligible buyers to meet the number of available homes.
In recent years, many baby boomers delayed downsizing in response to the longest bull market in stocks in history. But that may all be coming to an end, sending an additional surge of homes for sale to the market.
Single-family rentals could also add to the coming surge in home supply as landlords are experiencing financial distress as a result of renters not being able to pay.
“The reason why the collapse in the subprime mortgage market hit the housing market so hard was because the lead up was predicated on the fact that there had never been a nationwide decline in home prices. But now for the second time in a little more than a decade, Americans are poised to witness the impossible.”