Many in the industry are either in markets where homes are still being bought and sold, or are looking ahead to what the industry might look like when the pandemic passes, whenever that may be. Redfin lead economist Taylor Marr believes the bill puts homeowners in a better position to weather the storm than they were during the last downturn.
“During the 2008 recession, many Americans had little-to-no home equity and could not afford to pay their mortgages, causing a flood of supply in the housing market as people were forced to abandon their homes,” Marr said. “That influx of supply, when paired with sluggish demand, led to a dramatic drop in home prices.”
“In contrast, home equity today is at an all-time record, the housing market started the year off strong, and homeowners have much higher credit scores than before, meaning they’re less likely to default on payments,” Marr added. “Additionally, the government has instituted a moratorium on foreclosures and is weighing a stimulus package that could help homeowners cover their mortgages.”