There are many reasons why the real estate market in the United States continues to thrive despite the COVID-19 and the subsequent global financial crisis. The market has proven to be resilient in the last few months. As a result, there are more properties for sale and more buyers who are ready to spend their money.
there has been an increase in sales of existing home sales in December 2020 than in 2019. The year 2020 sales of existing homes finished at 5,640,000, a good 5.6% increase from 2019.
This increase has continued to reflect in 2021. The substantial rise as at the end of 2020 could be associated explained as efforts to make up for trades that were subverted during the extended lockdown for most of 2020.
Although the housing market was able to pull through COVID, it doesn’t mean it was unaffected by it at all. The crisis caused a lot of unusual market trends in the real estate market. For instance, a cursory look at data lines will reveal sharp rises and falls, which is very uncommon for the real estate market that typically takes months to register a significant change.
While some sectors of the economy took a hard hit, which makes it hard for recovery, the housing market made some sharp recoveries reflected in the number of home sales at the end of 2020.
Of course, the housing industry has learned to adapt in the COVID era by adopting some innovative strategies, such as putting health and safety precautions in place, making well-informed and faster decisions based on current and trending market data, and going fully digital.
that 2020 signaled the start of a period of unprecedented growth in the industry despite the COVID-19 and effects of the lengthy lockdown. For the first time in a long time, the industry witnessed one of the best real estate demographics. Couple with the low mortgage, this new rise can keep the housing industry stable for the next few years.
The hints of the 2020 boom started as early as February. As at the time the sales report for homes was at 300,000. Although this signaled the beginning of the boom, it was also one of the highest sales reports for a single month in a long time.
It was based on this February early bloom that the subsequent months built on. One of the reasons for this build-up is because the market is still supplementing for the months that were lost. This also explains the high monthly sales data.
However, we expect home sales data to stabilize within the next months. Although the figure may get back to 6,200,000 monthly sales data once the high demand we are experiencing now is exhausted. However, it doesn’t necessarily mean that the housing market is experiencing a loss. What it means is that the market has naturally spent its COVID demand and is now stabilizing.
In fact, it won’t be surprising if monthly house sales data doesn’t rise above 6,200,000 or if it’s even lower than this figure. The demand is still more than expected, considering the effects of COVID on the global economy.
is the housing inventory data. The housing inventory usually witnesses a decline towards the end of the year and then steadily rises from spring. This has changed in the year 2020. The inventory data shows that house sales, housing investments, and mortgage demand rose up in 2020 compared to previous years.
The existing data for 2021 so far shows that the year is recording positive growth. There is a steady 1-15% growth so far, and it’s expected that the transition should continue within this range in subsequent months. Anything higher than this can signal an abnormal increase.
From the present data, the rest of the year looks good for the housing market. Of course, the events of last year will continue to influence the industry for the remainder of 2021. In general, the reports from the association of national realtors show that despite the effects of COVID-19 on the sector, the housing industry was able to prevail.
Not only that, the demographics show a lot of growth, albeit with sharp decline and recoveries. However, the most surprising thing of all is that low mortgage rates also survived the devastating effects of COVID-19.
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