The United States is in the middle of a recession, millions of workers are unemployed, and the real estate market is suddenly booming. Even without being able to accurately predict what is coming next in this COVID-19 environment, home sellers out there have good reasons to feel pretty good about 2020.
The State of the Real Estate Market in America
Realtor.com reported in early August that real estate prices climbed a whooping 8.5 percent in July, 2020 when compared to July, 2019. The National Association of Realtors (NAR) shared that July 2020 home sales were up 24.7 percent from the month before. They noted that that July was “among the strongest (months) the housing market has ever seen.” These home price increases are partly due to a shrinking supply of houses on the market (down 32.6 percent nationwide), low interest rates and pent-up demand from potential home buyers putting off house hunting during the uncertain spring season. Speaking of demand, the NAR noted that home ownership, in general, is at a reported 12-year high.
Demand is also causing homes to get snatched up more quickly. The typical home spent 60 days on the market in July. However, that number varies by region. In Hartford, CT and the greater Philadelphia area, homes are sold, on average, in as few as 48 days.
The Work-at-Home Effect
As more and more Americans are working from home, some temporarily and some permanently, because of the pandemic, there is an increased demand for larger living spaces. Home buyers are looking for homes with space for a home office as well as space to get away from their work in the evenings and on weekends. Working on your dining room table or from your couch is okay in the short term, but no one wants to live and work that way permanently.
The Bottom Line
The pandemic has brought unforeseen opportunities for home sellers. If you’ve been thinking about listing your home, there’s never been a better time. There are still plenty of buyers in the market and not as many sellers to compete with you as there have been in the past few years. By working with an experienced real estate agent, like the several agents who are Chamber members, you’ll be able to set the best home price, find the right buyer and sell your home quickly.