Even the most skilled and experienced real estate agents could not have predicted the roller coaster ride of the preceding year. First came the lockdowns amidst the pandemic that pushed property values down to a great degree. The real estate market, just as everything else, was greatly affected by COVID 19. No one was interested in splurging on a new house when people’s very survival was at stake. Then there were the overworked doctors and overcrowded hospitals. They were a regular feature of the COVID 19 global pandemic, not just in the US, but pretty much all over the world. People locked in their staples and their savings and just tried to get through a time when the economy was undergoing a massive recession. In such a grim time, few people had businesses and jobs they would call their own.
This terrible pattern was repeated all over the world, country after country. But, the US was especially hard hit because of the impact of the Coronavirus on the whole country. However, slowly but surely people are becoming normal (or as we call it now, ‘the new normal) as the vaccines have managed to curb the menace to a great extent.
As the pandemic (and its attendant fear and terror) recede into memory, people want to restart from where they left off. Yes, many things are uncertain and unpredictable, but the outlook for housing is looking pretty bright, to say the least. As of now, home prices appear to be overheated even as mortgage rates are registering a steep rise. Since the housing sector was not operational for nearly a year, the supply of new homes available for sale is very low. Add to that the fact that many pandemic-related mortgage bailouts are going to expire later this summer.
The Housing Market in 2020
Barely a year ago home sales had all but ground to a near-total halt. It was not just that people were not buying and selling homes, but they did not even want to enter them for fear of the virus. However, this time has passed and now housing has not just hit the gas pedal, but it has also led to a steep increase in prices. This is due to the fact that people want to jumpstart their lives once again. Basically, it is primarily an emotional response to the pandemic. Since people had been confined to their homes, they spent the time with different activities, such as preparing hair masks for hair growth, meditation and then there were the prospective buyers who passed the time looking at properties online. They are now raring to purchase the properties that had been coveted for nearly a year. Once the restrictions were lifted, living space became a premium asset. The popularity of the property market was also bolstered by very attractive mortgage rates, which are amongst the lowest in recent history. It is very likely that this revitalization will prove to be sustainable until at least the end of this year, if not beyond. Especially if mortgage rates continue to remain low and job gains continue along the same lines.
The Quest for More Space
Another factor that has profoundly influenced people’s buying behavior in the post-pandemic world is the lack of certainty. In fact, people are not sure when and if they will be able to enjoy the world as they did before the pandemic. Covid 19 has changed what buyers and renters find essential. This is why they are looking for more indoor and outdoor space. They now want more dedicated rooms for schooling and working from home. Many housing and property dealers have seen demands for accessory dwelling units triple within a few short months. People are interested in home additions that give extra space for both solitude and privacy purposes. You can seek help from a home remodeling contractor who can do this for you. These extra spaces can be used for a variety of reasons, starting from trying hair hacks for healthy hair and other self-care tips to studying for your college exams or having your work meetings there.
Property Groups and Agencies
At the beginning of the pandemic, many properties had gone off the market as people adopted a ‘wait and see approach. Today, new properties as well as old ones are back on the selling block and many property companies such as NYC property management companies are thriving due to high demand. One such company is the MDSquared Property Group that is rushing to cope with the surge in order for new homes.
The uncertainty of the last year has given way to new hope. People have changed a lot during the pandemic and its attendant lockdowns. They want more space and bigger homes for both home-based work and schooling. Since mortgage rates are low and the economy is coming back on track, the housing market has bounced back from last year’s record lows.