Prospective homeowners have been postponing their plans to purchase a new home due to the current financial situation.
According to Capital Economics, sales of houses may fall by 35%, as compared to the previous year, by the end of the second quarter this year.
The reasons for the fall in the sale of houses include increase in unemployment and restrictions on people's movement.
A renowned mortgage market player, Fannie Mae, predicted that the US housing market will continue to see a price growth despite the impact of COVID-19. However, analysts believe that this prediction might not come true as housing prices have already started to fall amid the impact of the coronavirus crisis.
40% of sales in the US housing market take place during the spring months, i.e. March to June. However, this may not be possible this year due to the coronavirus pandemic.
While some experts are sure that the housing market is going to see a major impact, others don't think it's going to be all doom and gloom unless the pandemic stretches a few months longer.
Experts also believe that the market might improve in as little as two quarters after the economy starts to improve.
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