2020 Mortgage Forecasts: Defaults to Jump, Originations to Tumble, Sales to “Suffer” Mortgage Arrears to Rise in 2021 and Home Sales, Prices to Suffer Short Term Pain?
The responses were grim when agents were asked to estimate the extent of the financial damage COVID-19 will ultimately do to their incomes. Over 90% of respondents are expecting losses of at least 25%, with 29% of that group projecting losses of more than 75%.
The remaining questions provide a somewhat muddled view of the future. Over 60% of agents say they are expecting a significant negative impact on the real estate market in general (34% expect slightly negative effects), but 80% think the post-lockdown recovery will take 12 months or less. 39% of realtors surveyed feel the recovery will be complete in three to six months. But a not insignificant 17% say the recovery could take up to two years.