Realtors don't expect the 2020 "spring
market" is going to happen, but they are optimistic there will be a
post-pandemic rebound driven by delayed demand. The National Association of
Realtors® (NAR) found, through an Economic Pulse Flash Survey, that 59 percent
of its members feel buyers are merely delaying home purchases for a few months
while a similar number (57 percent) said sellers are doing the same with listings.
NAR Chief Economist
Lawrence Yun said, "Home sales will decline this spring season because of
unique economic and social consequences resulting from the coronavirus
outbreak, but much of the activity looks to reappear later in the year. Home
prices will remain stable because of a pandemic-induced reduction in inventory
coupled with less immediate concerns over foreclosures."
The survey, the latest
in a series, was conducted April 5-6,
2020. NAR asked members questions about how the coronavirus outbreak has
impacted the residential and commercial real estate markets. A large majority
of respondents (90 percent) said buyer interest has waned during the crisis while
80 percent said there had been a decline in homes on the market.
Nearly three-quarters of those surveyed said sellers are
holding prices firm while 63 percent said buyers are expecting prices to fall with
less competition from other buyers.
Respondents cited the important role
technology is playing in real estate's new normal. The most common tools that
are helping them manage deals are e-signatures, social media, messaging apps
and virtual tours.
Both landlords and property managers
confirm that many residential tenants are facing rent payment issues, but 46
percent of managers and 27 percent of individual landlords say they have been
able to accommodate their tenants delayed payment requests. NAR said the recently
enacted CARE Act with its eviction prevention provisions and financial support
for individuals and small businesses should help keep the rental market steady.