How the Real Estate Market is Expected to Change in Late 2020
With the coronavirus still lingering within our communities, many businesses are making necessary changes. This abrupt change has had an effect on the economy. That doesn’t necessarily mean it’s been a change for the worse, however. Depending on the industry, some consumers have to spend more in certain markets compared to others. The real estate market experienced a sharp drop in activity due to the pandemic. As months passed and consumers became more comfortable, real estate across the country has heated up. Let’s take a look at the fate of the real estate market for the remainder of 2020.
The Impact of Mortgage Rates
Mortgage rates hovered at approximately 3%, about 2 percentage points below the average level that was set eighteen months ago. As the economy reopens, homebuyers fear they might miss this opportunity, not wanting to miss out on low mortgage rates. Although, experts predict that home sales will rise in the latter part of the year.
Sellers Continue to Take Precautions
Sellers and real estate agents are well aware that the pandemic is still in full effect. Many consumers are fearful when it comes to going out for purchasing. In order to better comply with potential homebuyers, sellers are giving new homes a deep cleaning and are providing virtual meetings for consumers who prefer to stay in their homes for the time being. Even some sellers are trying to get to know their prospects much more to make both parties feel more comfortable.
A Change in Home Construction
Due to the fact that some supplies have restricted new home construction, some buyers have opted to other forms of construction or other companies, especially single-family houses. These houses and similar residences are optimal during this time as they pose less risk associated with the coronavirus and they are more customizable. Construction companies are trying to get creative and innovative to meet consumer demands.
The Pace of Sale Quickens
As homebuyers eagerly find and close deals on homes during this unprecedented time, listings disappear within days. This activity has shocked sellers and agents, as they did not expect people to continue house hunting. Furthermore, sellers are trying to connect more with their agents to take advantage of the time and get a property off their hands as quickly as possible.
Smaller and Local Markets Are On the Rise
More and more families are searching for more private services during this health crisis. As such, many homebuyers are seeking the help of more local and intimate companies. Families are also doing this out of the effort of being able to have more support in the home buying process. Experts believe this change may carry on even when the coronavirus is out of the picture.
Home Sales Activity and Prices are Fluctuating
Some customers are unsure as to whether or not they should look into a home because prices have been in flux all year long. At the beginning of this year, prices were not too low nor too high. Come March, prices dropped like never before. As months have passed, prices have slowly risen, as the real estate market hasn’t completely gone out of touch with the community of consumers.
Planning for the Future
Predictions indicate that home values will soften, especially during the colder months, as more and more people spend more time in their homes during this season of the year. Experts also predict that the housing market will go completely back to normal in late 2020, going into early 2021. Although, many experts are doing their best to stay aware of coronavirus cases, as they may drop or rise.
Overall, the Housing Market Will Bounce Back
As for the U.S. housing market as a whole, it is believed that it will bounce back completely. Not much harm was done to the real estate market in the first place, therefore, professionals will not be obliged to do much in the efforts of an economic recovery. In fact, they predicted that June could have the least sales and purchases. From this point on, sales should only go up.
Choose Lozano Real Estate Group as Your Trusted Brokerage
The Lozano Real Estate Group is proud to be known for our excellent service and team effort when it comes to supporting and meeting the goals of sellers and buyers. No matter what the world may be going through, we are here to help. Contact us today to learn more.