U.S. sales of new homes plunged in March as the coronavirus-related shutdowns that began in the middle of the month began to rattle the housing market.
The housing market has taken a hit as the coronavirus has spread. However, some buyers are still moving forward.
By region of the country, sales fell a sharp 41.5% in the Northeast and 38.5% in the West. Both regions had states that implemented stay-at-home orders sooner than other parts of the country. Sales fell 8.1% in the Midwest and inched down 0.8% in the South. Ben Ayers, senior economist at Nationwide, said that sales activity in coming months will take a significant hit from the government-mandated shutdowns and layoffs. But he said the outlook for the housing sector should improve as the effects of the coronavirus wane.
“Low mortgage rates and continued demand from the millennial generation should drive a rebound in housing activity later this year and into 2021,” he said.
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