One of the main reasons for
these trends is that people are moving out of big cities and into the suburbs.
This was already happening before 2020. But the COVID-19 pandemic made it
happen faster.
But over the next 18–24 months,
you should also keep an eye on a few other important changes in the real estate
market.
Let’s get to the trends right
away:
- House
Hunting Goes Digital
The epidemic hastened
digitization in all industries. And the housing market is no different. Some
buyers in 2020 bought their homes without ever setting foot inside due to the
pandemic and the tight property market. Due to virtual capabilities, many
people were able to virtually tour properties, including drone videos with 3D
tours and unknown virtual staging.
Home sellers were able to
explore properties, contact agents, and learn about mortgage possibilities
during the pandemic thanks to websites like Zillow. There are 3D home tour
options offered by Zillow and several related businesses. A mortgage can now be
obtained online as well.
- People
Move from Cities to the Suburbs
The COVID-19 epidemic has
accelerated the suburbanization of large cities. Once the US is securely out of
the epidemic, the largest metro areas are likely to recover. However, the
tendency to eschew a life in a big metropolis might continue for the next three
to five years.
The change is being made for two
main reasons: choice and necessity. People who can’t afford to stay are forced
to relocate. while wealthier people are voluntarily moving. People move in
search of more affordable housing options when they lose their employment and
can no longer afford major city expenses.
Last but not least, the suburbs
are a desirable location because of their lower taxes, affordable housing, and
low rent.
- The Sun Belt’s Popularity is Increasing.
One place that Americans are moving to as they leave the large cities is the Sun Belt. The epidemic increased the Sun Belt’s growing appeal, which is projected to last for the foreseeable future.
The Sun Belt is the region of the US that spans 18 southern states and runs from California to North Carolina.
Due to lower taxes, cheap housing costs, and a growing number of retirees, the area is also becoming more and more appealing to younger professionals.
- Single-Family Housing Demand Creates Shortages
People are relocating from the cities to the suburbs, which is increasing the demand for single-family houses.
Due to isolation, social isolation, and telework, the importance of the home is growing. Previously, there were stable housing patterns before the epidemic, but no so anymore.
The desire of millennials to start families or purchase their first homes is another factor driving suburban expansion.
- HomePrices Continue to Rise
The present trends in real estate are closely related.
The property market briefly turned around shortly after the epidemic began as prices fell and individuals planning to sell their properties reconsidered their choice.
However, prices increased once more a few months later. And even now, the seller's market is more robust than ever.
Prices for single-family homes are rising quickly, and home purchasers are not discouraged by high prices.
Conclusion |
This concludes our discussion of significant current real estate trends.
As more people move to the suburbs and try to buy a home, it’s likely that prices for single-family homes will stay high and supply will be low.
It will be Interesting to see which of these trends COVID-19 makes temporary. These are real, long-lasting trends that will probably last over time.
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