Housing market remains stable
February 1, 2021 – After a year plagued by uncertainty, illness, and an economic recession characterized by job loss and business collapse, it is 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 this are:
- 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
- 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.
The Diane Donohue Team | 410-404-3889 | firstname.lastname@example.org