When COVID-19 hit the United States, real estate witnessed a decline in sales. The pandemic slowed real estate down, as most who were planning on buying/selling a home before COVID-19, decided to wait to get a feel for the economy.
Open houses were prohibited, resulting in many real estate companies going virtual. However, when people are looking to buy a place to call home, virtual tours don’t always do the home justice.
When the state lockdowns were lifted, people were ready and eager to buy a home. An article from Housing Wire, titled New-home sales rise as Americans freed from lockdowns go house-huntingmentions, “Economists has expected sales would drop for a third consecutive month in April because of the economic shock caused by the COVID-19 pandemic.” Now, economists are realizing the stabilization of the housing market started in April, and will continue to rise.
The article also mentions that new homes are having sales, which is “helping overcome” the bumps in the road from the pandemic, such as the “spike in the jobless rate”.
An article from Forbes, 5 Indicators to Watch in the Housing Market Recovery from The Coronavirus, states, “While new listings remain substantially lower than their level a year ago, the rate of their weekly decline has started to improve. For the week ending May 8,Redfin reportedabout 70,000 newly listed homes, which marked 30% annual drop.”
The article also mentions, “The quick bounce-back is due to record-low mortgage rates, virtual home shopping solutions and the easing of the lockdown restrictions.”
With the demand continuing to rise, the real estate market is starting to look up again.
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