While the COVID-19 pandemic had negative impacts on many elements of the economy during 2020, some things had surprisingly pleasant effects. One of the biggest shocks was the amazing reaction of the housing market despite the drastic hardships that the world has seen.
In what sense has the housing market changed during the current economic situation and how does that continue to be the case? We have a few answers to that.
2020 saw impressive percentage increases in several aspects of the housing market such as home worth and home sales. 2021 isn’t appearing to veer from that, but rather only continue upwards bound. While there could be many reasons why home sales boomed and continue to do so, a couple of reasons stand out. One of these is people’s increased appreciation for their homes due to the stay-at-home experience. Another fact was that thanks to new online platforms, real estate was able to continue forward without skipping a beat. Listings, showings, and contracts could all be done from the comfort of the buyer and sellers’ homes.
Another big contributor to this booming housing market was the millennials, who were and are actively buying homes without holding back. It is no wonder that it is such a competitive market right now as more people than ever are on the hunt to find a home, meaning that houses are flying off the market.
The fact that it has become harder and harder to find houses has led to an increased need for new construction, which will also be an exciting boost to the market. It is also an exciting time to become a homeowner since house values are appreciating due to the supply and demand, as well as the all-time low mortgage rates, which is a win on top of another win for many home buyers.
Not only has this pandemic been surprisingly good for the market, but post-pandemic is predicted to only get better! Experts are saying that the bounce-back after COVID-19 will mean even more surge for the housing market if we can even imagine that!