2020 has been unpredictable, to put it mildly. This year has been an incredibly confusing time to buy or sell a home. No one knows for sure what will happen to the housing market once COVID-19 has gone, and we finally see the full extent of its effect on the economy.
Fortunately, there are some positive signs that things may not be as bad as many folks expected early on. In this article, we’ll talk about current housing market trends that should be on your radar. Hopefully, these will give you an idea of what to expect in the days and months to come.
If you’re thinking about listing your home or buying a new house during this pandemic, read on to learn about some surprising trends.
What Are Current Housing Market Trends?
Before COVID-19 hit the market, home prices were rising steadily. The good news is that the housing forecast shows home prices are still projected to continue increasing. Those increases may take a little more time in most housing markets.
The National Association of Realtors found that existing home sales in September 2020 were more than the record set in 2006. What does that mean for you?
Here, we’ll tell you about 7 significant housing market trends that are sure to make a difference well into 2021.
1. It’s Increasingly Becoming a Seller’s Market
Home values are rising across the country, and it’s becoming clear that it’s still a great time for selling homes. Homes sales are up over 10 percent from this time last year.
There are only enough new homes to keep up with the demand for 2.7 more months. If the rate keeps growing, the United States could run out of new-home inventory by early 2021.
Combined with the current construction pace that hasn’t been keeping up with the demands over the years, this adds up to a fantastic opportunity to sell a home and make more profit.
Related: Should you buy a home this year?
2. Record Low Mortgage Rates Are Available
A 30-year fixed mortgage rate fell to less than 3 percent this year. Excellent news for potential buyers, as lower rates can significantly increase their purchasing power while searching for the home of their dreams.
Lower mortgage rates have also given many homeowners the chance to refinance their loans. Allowing you, the homeowner, to save money in a chaotic economy — when saving money is more important than ever.
Thanks to these record low rates, it seems mortgage applications have increased by 22 percent from 2019. All of these factors are playing into the demand for new homes on the market.
3. Construction Has Increased, but Not Enough
Construction has picked up in the U.S. over the year prior. But it doesn’t seem to be keeping up with the demands for new homes. New construction listings are down more than 30 percent as of August compared to the year before.
The rate of construction is sure to impact the pricing of new listings for some time. It could be harder to buy a new home for less in the future, making now the time to take advantage of low-interest rates and buy a new home.
4. Fewer Houses Are On the Market Trends
It has recently become more of a seller’s market because the supply is not meeting the demand during this uncertain year. Twenty percent fewer houses are being listed compared to this time last year, making buying a new home more difficult.
Many sellers are waiting to list their homes because of the uncertainty of the pandemic. There are many unknowns now concerning unemployment, the future of health insurance, and when a vaccine will be available to the majority of the country.
5. A Move Away From Big Cities
A trend that’s been popping up since the pandemic began seems to be here to stay for the foreseeable future. It appears that more buyers are in the market for homes in the suburbs these days.
While this was beginning to be a trend pre-pandemic, it is now becoming even more prevalent in the age of social distancing because of rising costs of living in the major cities.
Many locations have seen a much higher demand for homes with more outdoor space. Big backyards for gardening and entertaining are on everyone’s wish lists. Long porches for enjoying the weather are something buyers are looking for now.
6. Larger Homes Are Making a Comeback
While tiny houses and mobile homes have their place in this new economy, larger houses seem to be what many homebuyers seek. The combination of more people working from home and needing home office space — along with the influx of extended family moving in together due to changing circumstances — has led to the need for more space.
Buyers are looking for extra bedrooms to create ample workspace from the comfort of their homes. Many need more space for children displaced from college campuses and older family members not looking to enter a nursing home during a pandemic.
7. Avoiding a Seasonal Slowdown
With the holidays fast approaching, experts are waiting to see what market trends conditions will look like toward the end of 2020. Traditionally, we see a marked slowdown of real estate transactions toward the end of the year.
This year, however, has been anything but ordinary. If things continue the way they have in the previous months, home sales have the potential of continuing to increase even through the holiday season.
Making Sense of It All
While buying and selling a home is an individual choice with many factors to consider, the good news is that the pandemic hasn’t had nearly as much impact on current housing market trends as many worried about when it took hold in March.
It’s a fantastic time if you’re looking to sell your house for more than you thought possible. If you’re thinking about listing your home and taking advantage of increasing home values, give us a call today.
Are you looking for more help navigating the real estate market during these confusing times? Check out more informative articles here on our blog. For more information on Peoria real estate, Paradise Valley homes for sale, Phoenix real estate market and Glendale AZ property, contact my office at any time.