City Looks To Drop Value of Homes Over COVID-19

in leofinance •  last month 

It has been estimated that home prices could see up to a 20 percent drop or more in value because of the COVID-19 situation.

In Cook County, Illinois, city officials there have admitted that they will be looking to reassess home values in the area and those prices should be updated by next year.

The homes are expected to come down in price at least 8 to 12.2 percent or more.

For those who have been renting and waiting to find a good deal on a home that doesn't seem to have an incredibly overinflated price, this will no doubt come as good news.

But for others who are having their own asset devalued, it might not be the best news to get.

Many areas have had their real estate sales plummet over the last couple of months.

Not all home prices are dropping though, some reports suggest that there are a few areas who have been seeing an increase in price during the coronavirus situation.

In places like Oregon and New Hampshire people have continued to buy up property even though there has been that lockdown on the economy.

Some authority figures, like Gov. Greg Abbott in Texas, have claimed that they won't be looking to freeze property values during the COVID-19 situation, even though there are reportedly many who believe that their property values are currently too high. In Colorado they might see the second-largest property tax cut in history, and some jurisdictions have been looking to extend property tax deadlines or reduce any penalties.


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Just wait until these municipalities start defaulting on their bonds.

Commercial real estate is going to collapse along with placing a blight on the communities. This will likely translate into further drops in residential values.

Posted Using LeoFinance

This is a tough one to call.

For any long enough time line, house prices are going to drop 80-99%.

But, as soon as states start opening up we will probably see a flurry of home sales as people cooped up finally get out to getting their dream home.

In other news, many small rental companies are going to go bust as people haven't paid their rent and the mortgages are due. So, these homes are going to be liquidated. And it all depends on when they come on the market.

Further, we will see a lot of small banks die from lack of mortgage payments
which will shut down some bigger banks, which will...

So, mortgages are going to become scarce.

Lastly, we are going to see lots of people moving out of the (soon to be) frozen north.
Driving down home prices there, and adding to the buyers in lower latitude housing markets.

All of these are almost guaranteed, but when, and in what order?