The beginning of 2020 hit us with an unprecedented pandemic. While some businesses and industries across the globe suffered a severe hit, others continued to flourish. One such advancing sector is the real estate market. The fall 2020 market is anticipated to elevate home buying activity further. More and more people, especially first-time homebuyers, are looking forward to cementing their homeownership goals this Fall. Here’s what you should know:
Delayed real estate deals piled up
The COVID19 pandemic had us all strictly grounded. People throughout the country were home-bound in the first half of 2020. When the fear of the pandemic crawled upon us, we took the initiatives of limiting our outdoor activities to only the necessities and reduced our social interactions. Resultantly, people who were planning to nail down their home purchase in 2020 have decided to wait until the pandemic situation stabilized. These people are now looking forward to lock-in their home-buying deals this Fall.
Mortgage rates at an all-time low
Another positive indicator of the fall homebuying market can be deduced from lower mortgage rates. The mortgage rates typically mirror that of the Fed rates, which have declined since the turn of the COVID pandemic. As a result, the current mortgage rates are under 3%, which means buyers can obtain mortgage loans at a very attractive rate.
Lower home prices
According to one survey of the housing market, this fall we could see a potential drop in home prices. An expected dip of 2 to 3 % is due to the falling demand amidst the coronavirus lockdown. With fewer on-ground inspections and strict implementation of SOPs, these prices could remain low for the foreseeable future. It represents an excellent opportunity for buyers to score some great housing deals.
New construction
The share of newly constructed homes remains constant throughout the year, but this fall we are expected to see increased production. New constructions were halted in spring 2020, but they’re back this Fall as investors try to make up for the lost time. It means even more newly constructed homes rolling out with great opportunities for potential buyers.
Buyers compete
Lack of listings means higher demand. Buyers often will have to bid higher than the listed price to get the house they like. According to a survey, recent months saw many homes under contract after only two weeks on the market. This is great for sellers and poses a worrisome trend for new buyers who often have to engage in multiple offer situations.
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