Coronavirus Affecting the Housing Market?
Before the COVID-19 outbreak the housing economy was strong. The demand for housing particularly in Austin and its surrounding areas was so high, the demand far exceeded the supply.
I predict we will see an even bigger slow down in new builds given that most construction materials come from China where many factories have shut down due to the threat of the disease spreading. This means existing home’s prices will be valued even higher given that there is less inventory for buyers to choose from. It will be interesting to see how this counterbalance plays out in the next couple of months.
Historically the year of a major election sees a slowdown in the housing market as investors wait to see who will be taking office. Normally we see this happening in the last quarter of the year, but when you combine a major election year with the rapid spread of an infectious disease that we have yet to contain, chances are the slowdown could last the entire year instead of just four months.
Austin may not be immune to COVID-19, but our housing market will more than likely weather the storm. We are on trend to have another stellar year with record sales. It just may take a little longer to get there.