How will the housing market be affected from COVID-19?

https://www.marketwatch.com/story/heres-the-hard-…

Read the article above, don't know how legit it is with the data, but I also don't know a ton about RE so I was hoping someone could shed some light on the situation?

Off shoots and questions I have:

Was the housing crisis actually solved or are homes still underwater/loan modification keeping people? Are people buying too much house/are housing being built with too many amenitites that people can't afford? Will people who have mortgages on multiple AirBnBs be affected?

5 Comments
 

For whatever it's worth, I've been following the SFR prices in my (expensive coastal) market and have seen virtually no price reductions. Spoke to several residential brokers who say that things are still selling above asking. Showings are a challenge but it's not having an impact so far.

I find it really hard to believe that the economic disruption that's happened won't take a chunk out of housing prices. But this has all happened so incredibly fast that it will probably take time for the pain to surface.

 
Most Helpful

Barry Ritholtz had a podcast the other day on this subject that was interesting: https://podcasts.apple.com/us/podcast/masters-in-business/id730188152

EDIT: I figured I should respond to the article you posted too... And I think it's largely BS. Author seems to be arguing that a lack of transparency in (read: their lack of understanding of) the mortgage market means that we are on weak footing? This is ridiculous by nearly every metric: loan to values and debt service to income ratios are nowhere near comparable to what we saw in the prior run-up. People don't default on their loans because the servicing rights are sold to some shady character, they default because they either can't afford their payments, or owe more than the home is worth - neither of which are going to happen in anywhere near the volume they did during the GFC. You can argue that debt has fueled another run-up in housing prices, but it's largely due to the cheap cost not the aggressive terms available.

Housing prices don't really decrease until there are "forced" sellers. If a home-owner is moving for convenience (or some other elective reason) they aren't likely to be the first ones to sell their home for less than their neighbor did last year. In 2008 that happened for a number of reasons: first, borrowers were overleveraged and need to sell because they couldn't make their payments, then the foreclosure wave came and banks needed to move houses off of their books quickly so they sold for lower prices, then the economy crashed, unemployment went to 10% and people lost their jobs and could no longer afford their (even reasonably leveraged) homes, and had to sell to stay afloat. Today, the leverage is much more reasonable, and housing markets have been pretty healthy, so I don't see a wave of foreclosures that is going to gap prices down 10, 20, 30+%. However, the last part, where people lose their incomes and need to sell their homes, is certainly a concern. This is coming from someone in an expensive coastal market, but the first wave of impact of this crisis has been on the lower end of the income distribution, so it is more likely to impact renters than owners. Coupled with the fact that the government is stepping in to blunt the impact here, I wouldn't expect a wave of forced selling that is going to cause mass decreases in housing prices. That being said, uncertainty is through the roof, spreads have blown out (so mortgage rates aren't falling in line with treasurys yields), and everyone's portfolio is worth 70 cents on the dollar vs. a month ago, so I would expect a slowdown in demand. Even when thing start to normalize, there will be some headwinds against further increasing prices.

 

Saepe nihil voluptatem expedita quod rerum cumque enim. Et sit veritatis explicabo non. Ut sapiente sunt vel esse omnis accusantium. Dolorem est temporibus dolores excepturi veritatis adipisci et.

Et asperiores atque molestiae suscipit laboriosam est eligendi. A blanditiis excepturi laudantium ducimus ipsam vel maiores.

Exercitationem vero aut fugit aut. Inventore aspernatur dolor modi sapiente dicta. Et omnis ipsa reprehenderit nostrum ipsum omnis. Ducimus numquam ducimus in porro doloremque eum optio.

 

Illum omnis at et quod consequatur numquam quas. Et sint perspiciatis pariatur et nam officiis sed sapiente. Autem vel voluptatum suscipit eos id omnis. Qui exercitationem laboriosam doloremque cum dolores. Quidem qui dolor veniam ut.

Ut alias enim eos nesciunt odio debitis. Eos dicta et voluptas. Veniam qui et sed perspiciatis asperiores corrupti.

Cumque aliquid impedit asperiores veniam. Earum fuga quia eos necessitatibus. Consequatur neque qui quia provident soluta non earum maiores.

[Comment removed by mod team]

Career Advancement Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

November 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”