The U.S. Real Estate Market During COVID-19
As COVID-19 continues to work it’s way around the world and our country, the US real estate market has slowly been regaining its footing. While not being at an electric growth rate throughout, much progress has already been made — prices are rising and inventory, despite its significant challenges (keep reading), is rebounding.
The housing market reached its lowest point in mid-April and May’s home data demonstrates that the US housing market is struggling in volume, but the worst has passed. The struggle to remain afloat amid the challenges brought by the pandemic has been difficult to navigate, but current pricing trends now suggest that the market is gaining momentum.
Unfortunately, the trends also indicate that while the market is trending upward, it’s going that direction rather slowly. If you’re looking to invest in properties now, here’s a quick look into the current real estate market situation:
The National Housing Market’s current state
The global economy is far from steady and has been directly impacting the national housing market. The momentum gained by the real estate market now is likely because of people that have been shopping over quarantine and lockdown periods through online methods.
Now that the lockdown regulations have been eased, people are out looking for homes. Experts further said that the market rebound is happening in part due to the general public’s motivation to end quarantine and lockdown on their own.
Mortgage rates have dipped considerably, so homeowners that are looking to refinance: now is a good time! Given the dip in mortgage rates, there are home buyers that are empowered to look at and purchase homes that may have been financially out of reach pre-COVID.
Homebuyers are determined to pursue the real estate market
As previously mentioned, homebuyers are determined now more than ever to pursue their housing dreams. They remain unfettered by the pandemic and economic downturn, courageously navigating the real estate market over the last two weeks of May.
According to the Realtor, the number of mortgage applications for home buying has increased by a whopping 17.5 percent. Unfortunately, with little to no inventory available, house prices will continue to increase. This leads to a more competitive market for buyers, and for sellers, it means that your selling price can rise!
The Inventory Issue
Given the state of the economy and your home being a major asset for the homeowner, it’s been deemed unwise to sell your biggest asset at a time of such uncertainty. With the vocational future of many homeowners looking unstable as well, a home in your portfolio gains even more financial and sentimental value.
With the ongoing inventory shortages, experts warn that home prices will continue to climb. While the appetite for real estate has returned, realtors now face an even bigger challenge — meeting consumer demand.
Inventory at the end of May suggests that it has started to recover, but the sudden increase in demand has once again led to a decline. We believe that significant economic and job increases will be required before supply/demand levels regain a normal balance.
Beyond the COVID-19 pandemic
While the numbers still look grim, the past few weeks of progress means that the US real estate market is showing signs of life toward recovery. While the lockdowns and quarantines may have caused homes to sell more slowly, the sheer determination of the public to move homes has allowed blown life into the embers.
For both buyers and sellers, here’s our encouragement: remain optimistic! There are enough of each of you that given enough time, we can still help you sell or buy your dream home. For many that have remained stable during COVID-19, the time may be now!
Conclusion
Due to the decrease in inventory and spring low-point, owning a home in the United States continues to be an appreciating asset despite the pandemic. In May the median listing price surged to a record of $330,000according to Realtor.com, a 1.6% increase YOY.
While inventory shortages are an issue that pushes homes to sell more slowly, prices have begun rising again. With mortgage rates lower than some of us have ever seen and prices rising, now is the time to buy!
Get in touch with us at Smith Street Homes! As real estate experts of Genesee County, we’ll make things happen for you—contact us today!