(PoliticalLookout.com)- Given the continued spread of the Chinese coronavirus throughout the United States, you’d be forgiven for thinking Americans were stuck at home and saving money – but the data shows otherwise! Sales figures show that Americans purchased more new homes in April than was expected, showing that the impact of the virus on residential real estate could be much less significant than forecasters expected.
According to the Commerce Department, the sales figures for newly-built family homes were 623,000 at a seasonally-adjusted annual rate. Economists, however, had expected those sales to fall to 485,000.
The same data from the Commerce Department showed that March’s sales numbers were reduced down from 627,000 to 619,000, which wasn’t a drastic difference. January and February figures were also reduced. The numbers for April, however, suggest that Americans have confidence in the market and, despite the virus, are continuing planning their futures.
The supply of homes hasn’t been interrupted by the huge economic impact of this virus. The data shows that the supply of residential properties for sale stands at 6.3 months which is, surprisingly, more than usual.
For the rest of the world, however, things have been different. The Wall Street Journal reports how economists have seen gross domestic product drop by almost 4% for 2020’s first quarter in Eurozone countries. It’s a much more dramatic drop than the American economy.
The housing market across Europe has also been dramatically impacted, too. Perhaps the difference is the way in which Europe has dealt with the virus, and how the United States has, at least in some parts of the country, kept the economy running.
Italy, for example, was the first big European country to be severely hit by the coronavirus. Without being able to look to other first-world countries and see how to deal with the virus, the country was forced into a drastic lockdown that crippled the economy and kept Italians stuck at home for months. Only now are those lockdown measures being relaxed.
The United States, however, was hit less quickly and had more time to prepare. President Donald Trump encouraged governors to keep economies open as much as possible and reopening efforts are already succeeding in Colorado and a host of Republican Southern states.
The plan might just be working!