The coronavirus pandemic has undoubtedly changed the lives of billions of people across the globe. When it first hit the States in April 1999, it caused panic, shuttered many businesses and there was a mass layoff. Fearful home sellers quickly pulled their properties off the market and closed all open houses. In such an unprecedented time, the housing market experienced a brunt crisis.
The booming housing market was shaken by the pandemic and home sales have been on fire ever since. As buyers fought for a limited number of homes, prices of properties turned white-hot. After a year of price gains in the double digits, newly built homes are now out of reach for much of the demand that remains in the market. Working remotely made people travel for vacations and become more socially connected in bigger homes away from cities, which ultimately lowered down the market competition. This uncertainty created by the variant cause decrease in mortgage interest rates. The combination of lower rates and fears about renewed lockdowns or closures might encourage more buyers to invest and enter the market. On the other hand, older Americans, facing higher health risks due to Covid-19, have been reluctant to let people into their homes or visit open houses, which may lead them to hold their property sale. This will cause a rise in prices and bidding wars.
After two decades when urban living was in vogue, the massive millennial generation is aging into homeownership during quarantine. This intense demand for property has met record-low inventory in 2020 to send prices surging. The rollout of vaccines is stoking hopes, it will help push mortgage rates higher. The slumping home market is expected to experience a speedy recovery in 2021, it will help the economy to stabilize. Lowered health risks and renewed homeowner financial confidence will bring more sellers to the market. Therefore, a steady pace of home value growth is expected in near future.