The housing market has been on a steady incline in recent years. It’s no secret that sales were booming at the end of 2019 and early into 2020, but the economy was a little shaken up when the Coronavirus pandemic hit the U.S. Job losses and work coming to a halt everywhere meant uncertainty for the real estate industry. Thankfully, things still tend to be going at a good pace due to the innovative minds behind real estate and buyers who are ready to move.
Many mortgage lending companies lowered rates dramatically amid the outbreak. These attainable rates have been a driving force in the steady demand for homes since February. According to Norada Real Estate Investments, the economy is expected to shrink by 6.5% in 2020, so the Federal Reserve has been purchasing bonds to maintain those lower borrowing rates.
Social distancing has placed a restraint on a large number of real estate transactions. Since people are trying to stay safe and healthy, it’s harder to get agents in and out of homes to prepare them for listing as well as taking tours of new homes. Thankfully, realtors with ongoing market experience have learned how to sell homes even in the midst of a pandemic. Because of the technological advances we have today, video guides and face chat tours are becoming easier than ever. If someone wants to stay home while still looking, they can simply call their real estate agent and discuss every aspect of the home buying process without having to risk their health.
Although a large number of businesses were shut down at the beginning of the crisis and deemed “non-essential”, the housing industry was able to continue moving. Construction companies have still been building homes and the supply is readily available as Americans are easing back into work and recovering their financial situations to prepare for new homes.
So, what does this all mean for potential buyers? Selection of homes may be limited as it’s been a bit tougher to get homes listed, but there will be little to no competition when it comes to bidding on a home. Realtors are enhancing their capabilities and loan companies are being more flexible to keep the economy stimulated. Americans are hopeful for the economy to remain steady during this time and to come out stronger on the other side.