We know that the coronavirus has had a serious impact on the real estate market. I have written before about record-low mortgage rates and low housing stock. But what about the Covid-19 vaccine? As people are vaccinated in Tampa and elsewhere, how will the real estate market respond?
Well, there is reason to believe that as people become more confident in the pandemic lessening, more individuals may prepare to sell their homes. The low housing inventory that has marked the past several months has made it clear that some people didn’t feel comfortable putting their homes on the market. With the recession, mass unemployment, and just general uncertainty, this makes sense.
The vaccine, on the other hand, represents hope. As more people take the vaccine and are protected from getting or spreading Covid-19, the economy is expected to bounce back. This renewed sense of stability and the possibility of a return to “normal” may help support a real estate resurgence.
According to Danielle Hale, the chief economist for Realtor.com, “We’re going to settle somewhere in between where we were before COVID and where we were during COVID.”
Hopefully, we will see more homes on the market during the second half of this year. Plus, builders may have the ability to erect more single-family homes to help meet the current demand. Home prices are expected to rise, but not at the same rate as they have over the past year. And, of course, once the economy gets back on its feet, interest rates will once again rise.
My advice? There is no reason to wait. For sellers especially, it is a good idea to strike while the iron is hot. Current low inventory presents an opportunity that may not come around again for a while. Houses are selling more quickly and for more thanks to buyers taking advantage of low-interest rates. If you want to sell your home before the market settles back down, give me a call.