KB Home Explains Why Coronavirus Won't Affect Housing Nearly as Much as the 2008 Recession

In a lot of ways, this feels like a replay of 2008, with a weak stock market, massive central bank intervention, and a general sense of panic in the markets. The last time around, real estate was ground zero for the crisis. Are we in for a repeat?

2019 was a great year for homebuilders. The S&P SPDR Homebuilder ETF (NYSEMKT: XHB) rose 28% in 2019, as the markets expected 2020 to be the year when homebuilding broke out and finally began to address the pent-up demand. The seasonally slow period of December-February showed no letup. Then social distancing began right at the start of the spring selling season. Instead of open house picnics with balloons and hotdogs, the sales offices and the model homes are shut to walk-in traffic. So what now?

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