By : Aahoo Pourang
With the first half of 2020 coming to an end, the long-term impact of housing and financial markets is becoming more and more visible. There’s also been an unforeseeable shift in real estate: purchase activity is 13% higher, and buyers seeking a home outnumber the homes listed for sale. The housing market, to many economist’s and Real Estate businesses surprise, has remained resilient even in the midst of a pandemic and a rise in unemployment.
Some homes were even taken off the market because, understandably, homeowners feared it was not the time to have strangers coming into their homes, especially during a pandemic that is airborne. Early on in the year, buyers went so far as to pull back from purchasing a home since the economy seemed up in the air. Although stability is not certain (in any industry), buyers are now ready to purchase come Summer. Because of the uneven distribution in supply and demand, prices are rising, which is the exact opposite to what happened during the Great Recession.
According to Housing Wire, Housing demand is 25% above pre-pandemic levels, and that’s only based off the first week of June. Buyers are now entering summer bidding wars involving multiple offers, driving prices up even further than original cost. Because sellers are adjusting to Real Estate pandemic laws and safety protocols, 3D tours and digital walk throughs are becoming ever prevalent. It still doesn’t help that elevated unemployment and qualifications to buying a home are added challenges.
There has also been growing concerns of digital real estate scams due to the housing industry shifting to online, including real estate transactions. Some real estate agents will meet with clients via video chat but never actually meet them in person when closing deals.
Although the news of the housing market can be taken as both good and bad, there are still millions of cases across the US, where families who were once able to afford to purchase a home, must wait until the economy reaches stability.