Housing Market Monitor – Coronavirus halts boom

After years of rising prices and high transaction volumes, the housing market is currently taking a severe blow. The measures needed to contain the spread of the corona virus are pushing the economy into headlong retreat. Unemployment is climbing and disposable incomes are under pressure. Combined with an expected increase in mortgage rates, home ownership is becoming less affordable. The number of house purchases is set to slump, also because investors are stepping back from the market. Due to this fall-off in demand, the strong upward price trajectory witnessed until recently will stall and the average price level will start to fall. By how much is impossible to say at this stage.