March began as the best month for real estate in the United States, with only 48,000 properties nationwide in foreclosure.
However, toward the end of March, it became evident that the number of new properties listed for sale decreased by 13% (and by 34% compared to the same period last year). This first sign indicates that people currently prefer to keep their properties rather than sell them at low prices.
Additionally, the increase in home prices has slowed according to reports. While in previous years we were accustomed to seeing a 3.3% increase in property prices in March, this year there is only a 2.5% increase.
Today, investors are also waiting on the sidelines for the right moment to invest in real estate, and such opportunities will arrive soon. Search rates for new properties have dropped dramatically, and loan applications have almost completely stopped. Property owners and families currently prefer to maintain their regular payments rather than embark on additional ventures.
The sharp increase in the number of job seekers worldwide following the coronavirus reminds the American market of the great crisis the nation experienced in 2008. However, the major difference this time is in the exposure of banks and private lenders. After the great crisis of 2008, the American nation learned its lesson and imposed new difficulties on loan applicants.
The most important thing to remember about the current crisis is that it is a health crisis whose byproduct is an economic crisis, not an economic crisis from the outset.
*All data taken from Realtor.com
Written by:
Yair Filosof – 054-2056195
Shmuel Filosof – 050-8788914