Throughout 2020 and 2021 there has been a lot of uncertainty in industries across America. One of these industries, in particular, was that of the US housing market, as people everywhere pondered over whether or not it would be able to hold up throughout elongated periods of people being unable to leave their home, hence putting a strain on the likes of viewings, inspections, and negotiation.
How Has the Housing Market Looked Throughout the Pandemic?
A lot of industries have been hit hard throughout the pandemic as the amount of job losses has continued to mount while places of work were unable to keep up with the constraints that were imposed as a result of social distancing. That being said, something that came as a surprise throughout covid-19 was the fact that home sales increased as many families saw the reduction in social life as an opportunity to purchase a home in the suburbs. This was also spurred on thanks to the new emphasis on both remote learning and working from home, meaning people did not need to get back into the city as much even after restrictions were lifted.
All of these moves were facilitated by the fact that the millennial generation has been much more into urban living and so has been staying in apartments based within cities. As such, these houses out in the suburbs have come with incredibly low mortgage rates, only acting as more incentive for those who were considering a move. Not to mention moving was still never too much of an issue throughout the pandemic as furniture could be kept in storage units such as those at storagearea.com so that even if all of the property couldn’t be transported, there was room for essentials and anything else could be stored until it was ready.
As a result of this surge in moving and millennials being pushed into homeownership throughout quarantine, there has been intense demand for property across the country, and as such, the average price of houses was surging.
Can This Last?
The question that remains on a lot of people’s minds in the housing markets is whether this positive shift can last. There remains the worry that now, as the vaccine rollout continues to be successful and restrictions are lifted, is there going to be a complete economic rebound that will push mortgage rates higher and erodes the buying power of first-time homebuyers? Not to mention, on the market at the moment, there just simply isn’t that much to buy.
There have been decades of sluggish building when it comes to recent properties, and as such, this has left a generation’s shortage of inventory. Then at the same time, when you look at high-quality homes such as those of the older generation, where some would expect them to downsize, this has not been the case as they remain skeptical about selling their property as we go through a global pandemic.
As such, the future of the housing market in the US remains unpredictable at this moment in time.
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Brett is the Managing Editor of this website. A former business executive turned teacher, activist, and writer, Brett also operates an anonymous Twitter account with a very large following.