COVID19 and the Real Estate Market, July 2020 Update

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When stay-at-home orders became widespread in March, many assumed that the economic shutdown and ensuing uncertainty would cause prospective home buyers to put their plans on hold. And they did, for a while. But just a few months later, it looks like staying in has caused buyers to be even more ready for a move.

In fact, according to a recent article from Housingwire, 53 percent of home buyers say they are more likely to buy a home in the next year because of the pandemic – compared to 27 percent who said they hadn’t changed their plans and 20 percent who said they’d be less likely to buy. Why would the coronavirus make home buyers more enthusiastic to buy? The vast majority said mortgage rates. Rates were already favorable to start the year but are now at record lows. That makes buying more affordable and presents movers with an opportunity to lock in a historically low rate.

Another reason is Americans have been able to save money during lockdown because they’ve been spending less. That means more money set aside for a down payment. Perhaps the most relatable reason survey respondents gave, though, belongs to the 28 percent who said they were ready to make a move because they’d been stuck in their small space for so long.

While the housing market has been hit hard by the coronavirus – with home sales predicted to suffer the biggest year-over-year decline in 12 years – expectations for its recovery are far more optimistic. In fact, according to one recent analysis from Nationwide, home sales could be back to 2019 levels as soon as next year.

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To your health, Dani

Source: Luxury Mortgage