Coronavirus Destroys Housing Boom

FILE - In this Oct. 22, 2019, file photo, a sign stands outside a home for sale in southeast Denver. On Friday, Feb. 21, 2020, the National Association of Realtors reports on sales of existing homes in January, (AP Photo/David Zalubowski, File)

Sales of existing homes tumbled at the fastest rate in more than four years, the first signal of what’s to come during the crucial selling season as prospective home buyers remain sidelined amid the coronavirus crisis, Baron’s reported.

Sales of previously owned homes, which make up most of the U.S. housing market, dropped 8.5% last month from February, the National Association of Realtors said Tuesday

About 14% of the American workforce has already applied for unemployment benefits , the outlook for housing has grown dimmer

Sales fell in every region of the country, led by a 13.6% month-over-month decline in the West, Baron’s pointed out

Total housing inventory at the end of March totaled 1.50 million units, up 2.7% from February. If inventory were to continue to rise, downward pressure on prices—which had been rising at the fastest pace since early 2016—could usher in some new buyers that had been increasingly priced out of the market, despite low mortgage rates, Baron’s pointed out .

Economists predict the numbers for April could be even worse.

Sholom Schreirber

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