The pandemic brought down the economy, riling up industries across the board. However, the real estate industry has shown otherwise. With sales booming, realty has fought against the growing pandemic, crossed the recovery phase, and now, doing better 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 percent compared to June, which itself had seen an increase of 20.7 percent compared to May. Year over year, existing-home sales in July were up 8.7 percent.”
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 percent 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, which was initiated as part of protocol amidst this crisis, sparked an interest amongst 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 in turn caused the inventory to take a hit, falling to an all-time low. However, demand is substantially increasing and most experts say that the inventory will not fall too far behind.
The competition amongst buyers is stiff and the timeline for a property to remain in the market has reduced to an average of 22 days according to the NAR report. Buyers are lining up and ready to put up a stiff bid. Recently, news has been reported on bidding wars, wherein people are bidding over hundreds of thousands of dollars over said price and still end up losing.
With most sectors facing heavy lay-offs, major budget confinement, and no end in sight for the pandemic, it’s a rather surprising turn of events in the case of real estate, although according to many experts this recovery was seen coming for a while now. Agents across the country had seen an increasing number of clients as well as workload since June.
In the new normal we expect to see post the pandemic; real estate sales are expected to continue their escalation. The growing enthusiasm and angst amongst buyers to gain housing could be key in reviving the economy through these uncertain times.