How Coronavirus Will Affect Home Prices
Q: How will coronavirus affect home prices? Ed, Cranford, NJ
A: Ed, coronavirus will cause a correction in the real estate market. Since real estate is a local phenomenon the impact on home prices will differ from place to place based on supply, demand, personal income and employment in each local real estate market. In NJ, after an almost 5% increase in home prices in 2019, the real estate valuations expert I follow predicts a 5-12% decrease in NJ home prices due to the coronavirus crisis. The good news is that record low mortgage interest rates and trillions of dollars of government stimulus will likely trigger a big rebound in home sales and home prices after the coronavirus is in the rear view mirror. Thanks for your question, Ed.
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