Welcome back to PSA Thursday, a mostly-weekly segment in which we talk about how to handle money, work, and life in the middle of a pandemic.
Before the pandemic, the U.S. housing market was strong. Home prices were at historic highs. Borrowers were more qualified than ever, with two-thirds of mortgage originations going to borrowers with excellent credit. As of January 2020, delinquencies (borrowers more than 30 days late on a payment) reached a 20-year low.
How has the pandemic affected the market? Are we due for another spate of foreclosures? What’s going to happen to housing supply? What about demand? Are buyers still buying? Are sellers still selling? And if you’re thinking about buying a home — either as an owner-occupant or as a rental property investor — what do you need to know about the new pandemic landscape?
We dig into depth in this short, researched-packed PSA Thursday episode.
Here’s what we discuss:
- Where the market was before the pandemic struck
- Why home prices were so high prior to the pandemic
- How supply and demand have influenced housing prices
- Are we due for a surge in foreclosures? Will history repeat itself?
- Where is the housing market now, during the pandemic?
- The role that forbearance and unemployment programs play
- What we’re seeing right now: a huge drop in buyer interest and a small drop in supply
- Where is the residential market going in the next 6 to 12 months?
- Is this a good time to buy property?
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