Will housing prices fall after the epidemic ends? What impact will the 2020 epidemic have on housing prices?

This epidemic was caused by Wuhan, which has caused the novel coronavirus to infect people in Hubei and even the whole country. If this epidemic is over, will the housing prices in Wuhan fall, or will the housing prices in the whole country change? In fact, for homebuyers, especially those who have just bought a house, no matter where you buy a house, you will not think that the housing prices will fall. The current housing prices are not cheap. Next, let's take a look at the impact of the 2020 epidemic on housing prices.

Will housing prices fall after the epidemic ends?

From a market perspective, the epidemic will bring a low period to all walks of life. The length of this period is also determined by the different characteristics of the industry. The real estate industry is a high-turnover industry. The shorter the sales cycle, the greater the profit of the developer. When the market is good, the turnover cycle is relatively short, and all kinds of developers of all sizes can make money, but the financial strength of developers is different. Under the cover of a prosperous surface, the problem of the capital chain will be covered up. However, when the market is not good and the housing inventory is seriously overstocked, some small real estate companies with weak financial strength will face a great survival crisis, and if they are not handled properly, they will go bankrupt.

At present, it is still unknown when the epidemic will end, but it is expected that after the epidemic ends, housing prices will have a small decline, because real estate projects need to recover funds, so they need to speed up sales. The most effective way to speed up sales is to reduce prices, reduce prices, and reduce prices again. Recovering funds is not only done by small real estate companies, but some large real estate companies also have the need to recover funds, so the overall market decline and the decline in transaction volume will be the situation of the real estate market in the short term.

What impact will the 2020 epidemic have on housing prices?

At present, the main impact of the epidemic on real estate is that developers cannot carry out normal sales activities. Homebuyers do not go out and sales offices are not open. Homebuyers can only communicate with homebuyers through the Internet. Sales activities such as opening sales cannot be carried out normally. Therefore, the current sales pressure and capital turnover pressure on developers are still very high.

Is it worth buying a house after the epidemic?

For ordinary home buyers, there is no need to worry too much about the impact of this epidemic on the real estate market. House prices will not rise or fall sharply. "Stability" is still what both the central and local governments hope to see. Whether the policy is loose or tight, it is to hedge against market depression or overheating.

The epidemic may cause the real estate industry to have no performance in the first quarter of this year, so the second, third and fourth quarters will see more frequent sales. The original 12-month work has now been compressed to 6-9 months, which will definitely lead to a large number of real estate projects and fierce competition. On the other hand, the original demand for 200,000 new houses will also be concentrated in 6-9 months. This will lead to the Matthew effect, with high-quality real estate projects being more fiercely competed for, and non-high-quality real estate projects may have certain price discounts to attract customers.

In short, for ordinary home buyers, the impact is not significant and they can enter the market as needed.

Related News

1. Although the epidemic has had an impact now, all industries will continue to operate after the epidemic is over. People will still buy houses, and it will not have much impact on housing prices.

2. This is unlikely. It seems that the government will not allow the price of houses to be too passive.

3. According to the current epidemic situation in China, I think no one will think about buying a house. However, the epidemic will not last too long and China's housing prices will not fall.