Zillow is a popular website that aggregates real estate price information and gauges market sentiment for homebuyers and sellers.

Analysts at Zillow said the following prior to the coronavirus pandemic:

As we close in on the longest economic expansion this country has ever seen, meaningfully higher interest rates should eventually slow the frenetic pace of home value appreciation that we have seen over the past few years, a welcome respite for would-be buyers. Housing affordability is a critical issue in nearly every market across the country, and while much remains unknown about the precise path of the U.S. economy in the years ahead, another housing market crisis is unlikely to be a central protagonist in the next nationwide downturn. While a housing collapse ushered in the Great Recession of 2008 and 2009, most survey respondents didn’t think a downturn in the economy will be centered on the housing market this time around. They thought the Federal Reserve’s actions when it comes to interest rates would be the biggest reason for the looming recession. After all, if rates go up, it will be more costly to take out a mortgage, shutting some buyers out of the purchasing process. They noted that, if the Fed raises rates too quickly, it could slow down the economy and lead to a recession. Higher rates make mortgages more expensive, shutting some buyers out of the market. Survey respondents were more concerned with geopolitical issues before 2018, citing a crisis on that front as the most likely cause of a future recession. Those worries fell below monetary policy concerns. Other concerns are focused on a trade war with China, a stock market correction, and unexpectedly high inflation. Those same respondents expected the housing market to continue to grow, with home values expected to rise 5.5% this year. At this time a year ago, the real estate experts thought home values would increase by 3.7% this year.

The housing market dictates the economy. High housing demand means a strong economy. However, with the chaos in the real estate and lending industry, it is hard to tell the type of damage it the housing market. Will we have a housing market correction? The answer is yes. Will we have a housing market crash? This answer remains to be tested on the recovery time after states reopen for business.

Home Values During The Coronavirus Pandemic

What are the home values during a coronavirus pandemic?

There is no doubt that homes will be in demand. However, most homebuyers have suspended their home purchases due to concerns over their jobs. The unemployment rate is expected to exceed 20% in the coming weeks. Many states are planning on reopening their states. The key question is how long will it take the economy to recover after it reopens. Millions of closed businesses may not reopen. Too much damage has been done. The Trump Administration is doing everything they can in trying to help businesses recover from the coronavirus pandemic. This is a breaking story. We will update our viewers in any updates as the news develops.