COVID-19 through a giant wrench in the housing market when it hit in February. No one knows for sure whether the market is going to emerge as a buyer or a seller. But with the impending recession, all indications are that it's going to be a buyer's market.
Do you want to know if it's 2020 portends a seller's or buyer's market? Read on to learn what 2020 has in store for the Dallas real estate market.
COVID-19 didn't just hit U.S. housing markets; it hit global housing markets. And COVID-19 isn't only affecting housing markets; it's affecting every market. In Dallas, many residents who were seeking their houses are now pleading for anybody to "sell my property now."
The average Dallas home price dropped as low as 35% from the previous year, which is an even more substantial drop off than Northern Texas home sales.
But when do we think we'll recover from this droop in the Dallas real estate market, and how can real estate investors survive?
Even before COVID-19, the national market experienced a downtick in housing prices over the past two years and housing prices in Dallas reflected this market turn. We should have expected the decrease in Dallas home prices because, starting in 2013, the U.S. has been in a bear market with housing prices excelling.
In 2017 and 2018, sellers were often able to sell their homes above the listing price. In 2019, however, that began to shift along with the average Dallas home price.
Because Dallas was building during the two years of increased home sales, COVID-19 has ravaged the housing market, making it an absolute buyer's market. The problem is, there aren't many buyers out there.
COVID-19 increased unemployment to a level not seen since the Great Depression. People with money saved and secure jobs now have all the advantages, but the fear is COVID continuing to destroy those advantages.
If COVID continues on a similar path, the housing market will continue to plummet, which is devastating for the economy as a whole.
If the economy continues to plummet more people will lose their jobs, more people will fall victim to foreclosure, and we could wind up in an unprecedented mess.
Changing the Solution
Before COVID-19, the Dallas real estate market was trying to build more affordable homes to bolster the market. But the incentives for people to buy weren't present back then, either.
Unfortunately, the best answer might be the one that provides the least amount of closure. That answer is that it might just be best to try and ride COVID-19 until its finished.
With so much uncertainty, trying to predict the future of the Dallas housing market is like trying to figure out when we have a viable vaccine and can see movies.
The only time we'll be able to make logical predictions about the effects of COVID on the Dallas real estate market is after the dust settles.
Dallas Real Estate Market Outlook
Right now is a trying time for everybody, not just the Dallas real estate market. But it's essential to remain in the moment when discussing market shifts. No one predicted COVID, but that means the light at the end of the tunnel could be right around the corner.
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