Housing market remains stable
February 1, 2021 – After a year plagued by uncertainty, illness, and an economic recession, the housing market remains stable. The last 22 months are characterized by job loss and business collapse, sickness and death, so it’s easy to understand why people might fear a housing market crash in 2021.
Fortunately, however, it appears that the coronavirus pandemic had little to no impact on home prices in 2020, and probably won’t in 2021 either. Rather than crashing, the housing market has shown surprising resilience, with home values actually rising, despite a more general economic downturn within the U.S.
Some factors contributing to market stability
Strong Demand
Before the advent of COVID-19, the U.S. housing market was stable and strong. While the global panic in April disrupted the market briefly, economists assert that there was still a lot of “pent-up demand.” Now, we have returned to steady home sales nationwide.
Low Rates
Over the past year, we have seen record-low mortgage rates, which are expected to remain low for months to come. Such appealing trends have motivated home buyers, thus boosting demand and prices
alike.
Low Supply
Over the past several years, we have had a low inventory of homes on the market and have, therefore, not been able to meet the level
of buyer demand. This puts upward pressure on prices.
Reach out to learn more and understand how the market can affect your ability to buy a home this year.