Great news for those considering buying or selling a home! Despite the recession due to the coronavirus, the housing market remains strong. While uncertainty has affected other markets and industries, economists predict that the housing market will continue to get stronger.
With low interest rates and low inventory levels, both buyers and sellers are motivated right now. Homes are spending less time on the market and they are being sold for more. Plus, more Millennials than ever are looking to purchase homes.
So what can account for this strength in our industry? It looks like, despite the recession and the subsequent job losses, most white-collar workers continue to do well. Buoyed by the low interest rates, they are seeking housing. The low inventory levels, however, have helped keep the market strong by limiting supply and increasing prices. Home sales have bounced back from the pandemic uncertainty more quickly than they did from the Great Recession of 2007.
Home prices are expected to continue to increase, which may attract more sellers. Right now, some economists believe that home prices could increase by as much as 3.7%.