We all can agree 2020 was a long year with many unimaginable circumstances. We’ve all had to adapt to a “new normal” and that includes the real estate market.
In many ways, the real estate market underwent many both predictable and unpredictable changes. It seemed likely that the real estate market would collapse with rising unemployment and a looming recession, but the path it followed was a bit surprising.
In the early months of the pandemic, home sales dropped significantly, but then soon turned around to begin its strong comeback which we’ve all seen across the country.
The Beginning
After COVID-19 began, homeowners could very well have rushed to sell their homes and flood the market with inventory, but instead opted to quarantine and stay put, delaying listing their properties. But before the real estate market could sink, the Federal Reserve dropped the benchmark interest rate to zero.
Mortgage rates then dropped to the historic lows that 2020 was marked by (rates hit record lows more than six times last year!) and pushed many buyers with job security to move off the fence and act.
Later in March, Congress passed the CARES Act which provided relief to businesses and allowed for forbearance on all government-backed loans for up to 12 months, further increasing buyer demand.
The Comeback
With the CARES Act in place and record low mortgage rates available, the real estate market rebounded unlike anything we’ve ever seen. From April through December 2020, housing sales in the US rose dramatically, while inventory remained low. To round out the year, housing sales in December even beat out those from the year before!
What It Means
The great news is that the market has showed no signs of slowing down since this rush of 2020. Buyers are still out in droves, ready to take advantage of the current market and low interest rates, while sellers are beginning to feel more confident and comfortable with listing in this environment. Inventory remains lower than what we saw pre-pandemic, but that can also be beneficial to both home sellers and home values.
Ready to sell your home and see what it might be worth now? Give our experts at The Estridge Group a call today!
