The coronavirus pandemic has created a huge impact on society. Compared to all disruptions caused by coronavirus, the economic impact on the housing market is the most severe. It is advisable to stay updated with the industry changes to make better decisions.
Top Changes to the Housing Market in 2020
1. A two-month pause: The government-imposed lockdowns and restrictions during the coronavirus pandemic paused the industry for over two months.
2. Supply-side shortage: Even before the coronavirus outbreak, the housing market was facing a supply-side shortage as supply in most major cities had decreased in January.
3. Consistent demand: While supply has declined, the demand for housing has increased. This unexpected combination has raised prices in many major cities.
4. Lower mortgages: Due to the coronavirus’s economic impact, the housing market has experienced lower mortgages. However, due to rising uncertainty, mortgage credit has become much harder to get.
5. Disruption in home-builder supply lines: Nearly one-third of all accessories used in home building are manufactured in China. The current scenario has led to an interruption in these supply lines, which can lead to inventory shortages.
6. High competition: Due to the economic impact of COVID- 19, there will be high competition in the housing market. The combination of high demand and low supply suggests a rise in the competition.
7. Virtual tours: With lockdowns preventing prospective buyers from getting physical tours of houses, sellers provide online tours.
8. Rising uncertainty: While several predictions can be made regarding the impending recovery of the housing market, the uncertainty of the situation suggests that it might take a long time to become normal.
A sense of cautious optimism surrounds the housing market in 2020. However, the fact remains that a home sale is typically a drawn-out process spanning several months. Therefore, any recovery would be subject to several factors, including government interventions and further virus outbreaks. If you’re looking to buy or sell a house in the Hermosa Beach area, contact the experts at Brighton Escrow. We are ready to offer you the top-tier escrow service you deserve.