why does the real estate market crash with the economy, if landlords and mortgage companies dont usually kick out people as soon as they are not able to pay their rent/mortgage because of the market crash?
In: Economics
The problem is that people who were thinking of upgrading their home and were looking for new homes are no longer looking for new homes. This is both to reduce the spread of the pandemic but also because they are more likely to save money rather then spend it on a new home, have gotten their mortgage pre-approval rejected or revoked or just because they have other things to worry about at the moment then looking at new homes. And then there is the people who were looking at buying a house to rent out for extra income who are now reconsidering as nobody have money to rent a new apartment any longer. So the real estate market is going down with the rest of the economy. It is likely not going to be as bad for the US real estate market as in 2008 or for the UK real estate market as in 1989 as these financial crashes were created due to a real estate bubble. But the real estate market will follow a lot of the rest of the market.
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