over 2 years ago
While experts were originally unsure of the COVID-19 pandemic would impact the housing market, a recent Residential.com survey has forecasted an increase in affordable starter homes going up for sale. This survey indicates an increase of 2%, from 8% to 10%, with the majority of homes (58%) valued at an entry-level price below $325,000.
In what was previously a struggling housing market, bidding wars are now becoming commonplace in certain parts of the U.S. These bidding wars have not been the result of lavish homes for the upperclass, but affordable spaces for families and young couples. Additional data to support a ‘return to normal’ for the real estate market includes a 30% rise in home listings from February to March, echoing previous selling patterns of listing homes in the spring time. Current data suggests the bidding wars may continue through the spring home buying timeline.
Industry leaders however, are still anticipating an inventory logjam. According to Residential.com, home inventories (i.e. affordable homes currently on the real estate market) were under-supplied by approximately 3.8 million homes at the beginning of 2020. The housing market has struggled to keep up with demand since the early 2010’s, as new home building rates were cut drastically to approximately half of what they were in the early 2000’s. Of the homeowners who were surveyed for Residential.com, 25% indicated they are unable to sell due to the inability to find a new home in their current price range (specifically for homeowners who were looking to sell in two to three years).
For those who are able to sell their current home, the median selling price on a home recently increased 17.2%. This increase has resulted in a median home price of around $329,100, the highest median price on record since 1999.
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