The housing market in the USA was just beginning to gain momentum when the coronavirus pandemic struck the world in 2020. When COVID-19 rattled, shook, and rolled the global economy, the US real estate market experienced a near-fatal full stop. But, unlike any other industry, the real estate market in the US has been seemingly relentless; it has been experiencing an unexpected housing boom, despite a global pandemic.
Let’s take a dive into the impact of COVID-19 on the US housing market—then and now:
COVID-19 in 2020: US housing market’s initial reaction
In 2020, the National Association of REALTORS® (NAR) highlighted the decline in sellers’ confidence as the news of the virus got intense.
These statistics reveal the impact the rise in the cases of COVID-19 had on the people’s morale across the country.
- In March 2020, home sales dropped by 8.5% from February 2020.
- New construction witnessed the worst showing in 6.5 years as it dropped by 15%.
- 81% of realtors reported that sellers had put their homes on the market, but on March 16, 2020, this number eventually fell by 20%.
But that was in 2020. COVID-19 in 2021 got the real estate business booming.
In 2021, America maybe seeing mounting bankruptcies and high unemployment, but the housing market is booming. According to Realtor.com chief economist Danielle Hale, “The housing market bounced back so much faster than other sectors of the economy that many have forgotten that housing activity slowed to a crawl during the early days of the pandemic.”
Today, properties aren’t just selling, but they are selling at a record pace. The COVID-19 impact on the real estate market is expected to show positive growth. With an increasing number of millennials out in the market to buy houses and Gen Z closing in on their prime home-buying age, the demand is expected to stay steady throughout 2021 and beyond.
These statistics look very promising for the housing market in the US:
- According to Zillow, expectations for 2021, there will be 6.9 million existing home sales, the highest since 2005. The one-year gain is projected to be at 21.9% in homesales, the largest since the early 1980s.
- According to Redfin, its home prices are up over 23% since last year.
- Statista reports an increase of up to 68.5% in homeownership.
- Zillow Home Value Index revealed that since the pandemic started last year, home prices have increased by 9.1%. And, over the next 12 months, it is expected to rise by more than 10%.
- In a market as competitive as San Diego, 55% of homes were sold off in less than weeks, with them being in the market for an average of just 20 days.
The COVID-19 pandemic, the loss of millions of jobs, a weaker economy—none of it stopped millions of people from buying or selling their house. In the age of social distancing, lockdowns, and quarantines, one of the reasons why the real estate business grew amidst a pandemic is the adoption of virtual technology.
Virtual technology is a practical solution to sell properties during a pandemic.
In response to the gravity of the situation, the real estate industry was quick to embrace virtual technology. With the help of three major forms of virtual solutions, the real estate business kept moving and shaking during the pandemic. These virtual solutions are:
With virtual technology, home buyers could get a close to real experience when scoping for new properties to buy. Virtual tours and 3D walkthroughs gave them a sense of physically visiting a house or property. Virtual staging allowed prospective buyers to see the living spaces in styles most close to their comfort and their own personal styles. All of this made it possible for real estate agents to create good shopping experiences for their prospects.
Businesses and services providing virtual solutions got busier and had to deliver good work in a timely manner and have been instrumental in the success of the US real estate market during the COVID-19 pandemic.
Styldod – doing what we do best to help the real estate industry going
We take pride in doing our part to help the real estate economy and are glad to be of assistance to both – the real estate agents and the home buyers. Our technology-driven virtual staging services have helped top agencies and real estate brokerage firms keep their sales moving during the pandemic.
Although the US real estate market was unstable and volatile in 2020, it was quick to rise in 2021. Virtual technology played a crucial role in the US housing boom during the pandemic. The COVID-19 pandemic has accelerated the adoption of key virtual solutions for real estate, including virtual staging, 3D walkthroughs, 360-degree virtual tours, and 3D floor plans. It’s safe to say that the age of virtual technology in real estate has well and truly begun.
Virtual staging and other related services are the way forward during these times. Get ahead of the competition; embrace virtual staging; try Styldod today.