Rethinking 2020: Real Estate Changes with COVID-19
Spring and summer 2020 looked to be quite the year for real estate – it was predicted to be one of the biggest years in sales in decades. However, with COVID-19 changing much about how things are operated, the 2020 year for real estate has adjusted.
COVID-19 halted many potential homebuyers and sellers. However, it is predicted that home sales will jump in late summer/early fall as Millennials make the jump to own homes.
Homes are still currently being bought and sold, just at a slower pace. The medium price for a home is expected to hold steady, rising just 1.1% in 2020 over the previous year. Chief Economist for Realtor.com, Danielle Hale, explains, “Were it not for COVID-19, we probably would have seen prices rise in the 2-4% range.
But buyers shouldn’t worry. Mortgage rates are expected to stay in record lows, hovering around 3.2%. Some lenders, however, might require larger down payments and higher credit scores due to the large amount of unemployment grappling the country.
Real estate has always been adaptable – with many safety measures in place to ensure the safety of employees and clients, home buying and selling is still accessible. And with many people rethinking their living spaces, it might drive homebuyers towards suburbs. Hale continues, “The experience of being at home for a long period of time has everyone rethinking their priorities. People are recognizing space is more important, so they’re looking for more affordable areas where they can have more space at the same price.”
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