As the year comes to a close, there is one thing that people around the world can agree on and it is that 2020 has truly been a year like no other. Stock market crashes, wildfires, protests, impeachment, murder hornets, allegations of election fraud and yet, above all else, the thing that 2020 will probably most be remembered for is the infamous COVID-19 global pandemic. It has been a series of life-changing events that we continue to deal with into the coming New Year.
Of all the things that have been negatively impacted by the Coronavirus pandemic, one thing that has surprisingly stayed strong has been the real estate market in the United States. Many are wondering how it could even be possible. Here are a few things that have contributed to its success:
1. Interest rates have been at a momentous low this year, paired with notable buyer demand. This has resulted in lower inventory in the housing market and, therefore, buyers who are very eager and willing to pay more for real estate.
2. Governmental assistance such as stimulus money, mortgage relief programs, and even protection from evictions have given consumers a needed boost and confidence to continue actively contributing to the housing market.
3. The emphasis and shift this year to work-from-home lifestyles and homeschooling have given people a newfound weight to the importance of their home. The pandemic crisis has driven the appeal of suburban living and more expansive residences since people witnessed the struggles that came with enduring a health crisis in congested cities and rentals.
4. The real estate market discovered its ability to not only continue functioning, but to thrive on a digital platform. Everything from 3D showings to virtual closings have proven that a pandemic did not have to slow down the carrying on of real estate transactions. If anything, it has made it even more convenient and comfortable to some who perhaps found the process intimidating.
These are just a handful of reasons why the Real Estate Market stayed strong despite the tumultuous year that engulfed us all while facing a pandemic. We will be watching and waiting curiously to see what unfolds as the battle to combat COVID-19 continues and how that will affect real estate in the year to come.