Real Estate News Roundup: April
We hope that everyone reading this is staying safe and coping with these difficult and stressful times—understandably this month’s roundup will be dominated by the facts of the exceptional circumstances we find ourselves in.
Much of the impact of the Coronavirus on the housing market, and the economy in general, still eludes even the most skilled of forecasters. We are, after all, dealing with a crisis that is unprecedented in modern times, however, the BCREA has put out its first indicators as to what it expects to happen in the coming months and going well into the next year.
The 4-page report forecasts a sharp decline—something that we’re already seeing reflected in the numbers for April—as social distancing measures remain in place.
However, they believe that rather than stagnating the economy, these measures will in fact create a pent-up demand that, when combined with the low-interest rates, will create a springboard effect boosting the real estate market once the measures are lifted.
This is rooted in their analysis which remarks that "The COVID-19 recession is unique in that it is not man-made...it did not evolve due to collective poor business decisions, bad loans, or misadventures in financial engineering”. This is reflected in the belief that the recession will not follow the patterns of previous recessions, and will require novel analysis and projections.
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