2020 has proven to be a rollercoaster for almost every market imaginable, especially the housing market.
With the advent of the global pandemic of COVID-19, the real estate market in certain states came to a screeching halt as realtors were barred from showing homes.
As the nation has recently taken steps towards reopening the market, new housing trends will emerge.
Here’s what you need to know about US housing trends in 2020 and how they affect you as a seller.
Buyer Confidence Has Been Stirred, Not Shaken
One major trend that we’ve seen since the pandemic is that consumer confidence has been stirred, but it is not entirely destroyed.
Although interest rates have been lowered, the reduction has done little to bolster home sales. It is important to note that this statistic alone does not mean that you can’t sell your home in 2020.
The chances you have to sell your home depend in a large part upon what type of home it is, where it is, and how flexible you are on price.
Many prospective buyers who would have been readily approved for a substantial mortgage pre-pandemic no longer qualify for such lofty sums now that the pandemic has put them out of work.
Banks have tightened their purse strings to shield themselves from losing money in today’s unstable and uncertain financial environment.
More Vacant Home Sales
Due in part to the financial difficulties brought on by the pandemic, you can expect to see a spike in vacant home sales. These properties are typically second homes for the upper-middle class.
When times are good, the expense of maintaining a second home is somewhat nominal, or at least manageable. In times like these, however, the extra taxes and other costs that second homes suck up can become burdensome.
The pandemic hit everyone hard and brought great, insurmountable struggles to households across the country. The financial perils caught many Americans off guard, crippling the bank accounts and earnings of millions.
All of these hardships have culminated into the perfect storm for a spike in foreclosures nationwide. As so many of these properties are foreclosures, they are also much more affordable.
The Fixer-Upper Market Just Got Tougher
Remember all of those bright, cheery TV shows that made house-flipping fixer-uppers look easy? Since the pandemic struck, it’s not so easy anymore. Turning a profit on a fixer-upper has never been more challenging.