After the onset of the COVID-19 pandemic, Americans have been looking to move to more suburban areas in order to avoid densely populated cities and find a more secluded lifestyle. This shift in geographical preference has resulted in an increase in homebuyers and higher real estate values.
According to the National Association of Realtors (NAR), sales of previously owned homes in the United States rose by over 20% in 2020. This was the largest annual increase in sales since 1983. The NAR also reported that the median home price rose by an average of 12.9% in 2020 as well. This was the highest annual increase in prices since 2005 when the median home price rose by 13.2%.
Due to the economic uncertainty caused by the pandemic, many potential buyers have put off purchasing a home. But there are also many people who are taking advantage of the current situation. Low mortgage rates have made it possible for many to purchase a home at a lower cost. Many others are taking advantage of the current market conditions in order to make real estate investments.
Realtors estimate that the housing market will continue to experience growth in 2021. Low mortgage rates are expected to persist throughout the year which should continue to attract buyers. Additionally, continued vaccine distributions should lead to a recovery of the economy and more job opportunities, giving people the ability to purchase homes.
The housing market boom in 2020 has had a positive effect on the economy as well. The increased demand for homes leads to more construction jobs as workers build new homes or renovate existing ones. This, in turn, increases the need for supplies such as lumber and cement, leading to more manufacturing jobs.
The upward trend in the housing market is helping many Americans realize their dreams of home ownership. For investors, this provides a great opportunity to make wise investments in real estate. However, while this situation is beneficial for some, it could also create problems in the future. This is especially true if the market becomes overheated and prices become too high. It is important for potential buyers and investors to consider all factors when making a decision to buy or invest.
In conclusion, the US housing market has been booming in the past year. This is due to the pandemic as people look to move away from crowded cities and enjoy a more secluded lifestyle. Low mortgage rates have also enticed many to take advantage of the current situation and either purchase or invest in property. This boom has benefited the economy in the form of more jobs in the construction and manufacturing sectors. While this influx of buyers could result in an overheated market, it has also allowed many to realize their dreams of home ownership. Thus, the US housing market can be seen as having benefited from the current environment while also necessitating caution from potential buyers and investors.
This article was contributed on Nov 27, 2023
