Coronavirus Impacts on the Real Estate Market
We have all felt the immense impact of the coronavirus on our daily lives, so how is the real estate industry coping?
Buyers nationwide have shifted priorities in their home search while many are working remotely. The focus is often on common spaces - a home office, extra bedroom, and an open floor plan - rather then on the commute time to the office.
"Virtual showings" and remote processes allowed buyers to continue purchasing homes throughout the spring. However, as soon as the weather cleared up, buyers were out in droves looking for homes to buy. Low interest rates fueled their purchasing power.
Sellers were also initially uncertain, with fear of exposure to the virus and not knowing if buyers were ready to purchase. Many home sellers who had envisioned putting their house on the market during the spring months decided to wait, and inventory throughout the country dropped.
As showings resumed in full force, those listing their homes are finding themselves in a seller's market due to the low inventory. The majority of sellers are not reducing their asking price and home prices nationwide, including distressed sales, increased year over year by 5.9% in August 2020 compared with August 2019.
Buyers do have the benefit of historically low mortgage rates. Although buyers have fewer homes to chose from, many are eager to take advantage of this opportunity to boost their purchasing power with a lower rate.
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