The pandemic brought uncertainty to the US economy, as many areas of the country shut down for periods of time. However, the real estate industry came back hotter than before. The major rise in sales was particularly seen in sales of existing homes.
From a recent article published by Inman on the report by the National Association of Realtors, “Sales of homes that had been previously owned shot up 24.7% compared to June, which itself had seen an increase of 20.7% compared to May. Year over year, existing-home sales in July were up 8.7%.”
The article further added that not only sales but pricing also saw similar growth. “According to NAR’s data, the median U.S. home price in July was $304,100, which is up 8.5% from July 2019 when the median price was just $280,400. In its report on the data, NAR further noted that prices ‘rose in every region’ of the U.S. July’s national price increase marks 101 straight months of year-over-year gains. For the first time ever, national median home prices breached the $300,000 level.”
The work from home culture, spurred on by pandemic lockdowns , sparked an interest among current homeowners to upgrade their standard of living by moving into larger homes. This in turn created a greater demand in the market for potential buyers, which is expected to extend till 2021.
The rise in sales has caused inventory to take a hit, falling to an all-time low. The competition amongst buyers is stiff and the length of time for a property to remain on market has fallen to an average of 22 days, according to the NAR report. Buyers are now faced with multiple offer situations, in many cases offering thousands of dollars over the asking price of homes..
With most sectors facing heavy lay-offs, major budget confinement, and the pandemic still affecting all facets of life, it’s a rather surprising turn of events in the case of real estate.
In the new normal post-pandemic, we expect to see real estate sales continuing to rise. The growing enthusiasm of buyers to purchase homes could be key in reviving the economy through these uncertain times.
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