Where Home Prices Are Heading in the Age of Coronavirus | Money
...the Coronavirus Aid, Relief, and Economic Security (CARES) Act allows homeowners with government-backed mortgages—which makes up roughly three in four mortgage holders—to get mortgage forbearance for up to a year if they’ve experienced financial hardship due to the coronavirus pandemic. That should help prevent a repeat of the foreclosure crisis and keep home prices relatively stable, Detwiler says.
...home price changes may differ between low-end and high-end homes. “For higher-priced homes, I wouldn’t be surprised if we saw prices decline slightly over the next six to 12 months,” he says. “Trade-up buyers tend to be older Americans, and older adults are at greater risk of getting sick from COVID-19, so I don’t think those buyers are going to be as active in the housing market.”
...markets where home affordability was already an issue, such as San Francisco, Los Angeles, and Seattle, could experience price declines if the economy sputters over the next six months.
...past recessions also suggests homeowners could be in store for pain. New home sales declined 15%, on average, during the seven recessions since 1970, according to a study by the Harvard Joint Center for Housing Studies. And, in recessions since 1980, real home prices decreased 5% year-over-year.
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