According to Zillow, home prices are predicted to fall 2-3% this year, which comes after a long and mighty recovery from the Great Recession over the last 8 years.
Zillow’s prediction is a sharp and fast 50-60% drop in home sales, which would bottom out at the end of this spring and then begin a recovery of about 10% per month through 2021.
Technology has helped buyers continue to view and buy homes virtually throughout the coronavirus pandemic.
A shortage of homes for sale is helping to keep home prices rather steady for now.
“Prices, historically, follow sales, lagging by several months. Sales will fall dramatically this spring, but there are already signs that buyers are coming back to the market. Web traffic on real estate sites is up, and several homebuilders have said that demand has increased in just the last few weeks. Much, of course, will depend on the overall economic recovery and just how hard and how long consumer confidence continues to drop.”