Have you ever seen the housing market like this?
The year 2020 will certainly be one to remember, with new realities that changed the way we live. This year's real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought was possible in the housing market. Here's a look at four key areas that are changing the market this year.
Housing Market Recovery
The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, with social media and innovation it helped the industry move forward, and business eventually ramped back up as shelter-in-place orders were lifted.The result? A complete transformation in the housing market from rock-bottom lows to extreme highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations.
Record-Breaking Mortgage Rates
Historically low mortgage rates are a huge 2020 game-changer. Today's rates are one of the motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to stay in record-low territory.When rates are this low, buyers have a huge opportunity to get more for their money when buyng a home.
Continued Home Price Appreciation
One of the main drivers of home price appreciation this year is low inventory. Inventory was low going into the pandemic, and it is still well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are getting homes faster than they're coming up for sale.This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price.
Even as home prices continue to rise, affordibility is working in favor of today's homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family's needs have changed.