2020 is going down in history as the longest year and most challenging and unique…at least for the real estate market! This year has been touched by higher unemployment, natural disasters, presidential and local elections, and, duh, a pandemic. These factors have influenced the real estate market, so let’s break down how…before we say “goodbye” to 2020.
Booming House Sales
Especially with a pandemic raging across the country and unemployment still above average, home sales have been pretty good, considering. But, did you know that home buying is at its highest level since 2006? In October, home sales are up 27% compared to a year ago, as reported by the National Association of REALTORS®. This winter is the best winter when looking at past winters. Mortgage applications are up 20% this year as well, so the people are ready to buy.
Record Low Mortgage Rates
The pandemic has created the lowest mortgage rates to exist. Last week the 30-year fixed-rate mortgage set another record low at 2.72%. And it’s been predicted rates will stay low in 2021. Low mortgage rates mean lower mortgage payments, so houses are now more affordable in some areas.
If you own property, you’re rich! Well, kind of. The average existing home price increased in October by 16%. So if you aren’t financially struggling from the pandemic, you’re technically richer (property wise). A property is equity rich if the property owner has at least 50% equity in the home. When home prices keep rising, it helps existing homeowners and puts them in a position to benefit soon.
Technology became the hero for 2020 with quarantine and government shutdowns. It also helped advance the real estate transaction and how houses are sold and bought. Virtual and 3D tours, video calls, augmented reality, and automation are all tools that helped save the market.
Those who have been buying houses this year have had their preferences modified due to the pandemic. Buyers wanted the suburbs with more yard space and square footage for amenities like a home office or home gym. Larger homes with multi-generational floorplans were also popular because they allow more people like older adults and younger relatives to live in the home.
The Comfort of Home
If this year has taught us anything, it’s that nothing is safer than your home. And with probably spending the most time ever in your home this year, it’s understandable. If you’re ready to find a place to call home, please reach out to our experienced, professional team anytime or fill out the form below: