By Martina Rexrode, from Sandra Sells the Shore
The current pandemic has uprooted different facets of all our lives as Realtors. It has completely transformed the way we go about our jobs, causing us to attend virtual sales meetings from our couches and grow accustomed to home offices. However, the housing market seems to be adapting to these changes rather well.
According to Markets Insider, the surge in home sales this year increased at the fastest pace since 2006, marking four months of consecutive increasing sales. New home sales jumped by 4.8% in August, not as high as July’s at 14.7% but still just as impressive. Many sources have labeled the housing market’s success as following a “V-shaped rebound”. This is one of the only areas of the economy enjoying such success, so it’s no surprise that everyone is watching the numbers carefully.
While July and August were impressive on their own, September and October showed home sales increasing yet again at their highest pace in 14 years. In an article from the National Association of Realtors, chief economist Lawrence Yun says, “Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season.” He went on to say that he attributed the jump to record-low interest rates and “an abundance of buyers in the marketplace.”
There is also a low inventory of available homes as well as a higher number of luxury home sales that each have major impacts on the numbers, pushing the median home price up to a record of $313,000, nearly 16% more than last year. The total inventory is down almost 20% from last year, dropping 3% from September. These numbers might also account for the surge in potential buyers.
Danielle Hale, chief economist at Realtor.com, says that more new homes have sold so far in 2020 than in all of 2019. She adds that “new homes are an important segment of opportunity for home shoppers,” especially with the decrease in the number of existing homes for sale.
Overall, the housing market has seen a wide range of changes despite the uncertainty surrounding the nation and economic stability during the current pandemic. With the year closing out soon, be sure to keep your eyes on the numbers.