2020 was supposed to be “the” year for many people and many things. Getting married, going on vacation, and buying a new home for example. What came instead was a change of plans and market disruption that no one predicted as the ball dropped on New Years Eve.
This year was the year of the unexpected as the coronavirus pandemic shook the economy, the stock market, and the way we interact. It was a disruption to the real estate market and the travel industry that Central Florida relies on so heavily. If that sounds doom and gloom, don’t let it fool you. If 2020 has proven one thing, it’s that the real estate market is resilient.
Here are three factors influencing the real estate market now that no one saw coming at the beginning of the year:
Low Interest Rates
Incredibly low interest rates have encouraged many buyers to enter the real estate market. With more buyers and less inventory, sellers are getting incredible prices for their homes and buyers are capitalizing on the low mortgage interest rates on great properties. With no certainty of how long interest rates will remain low, there is a rush of clients who weren’t planning on making a move taking advantage of the current market.
Summer Sales Peak
In more normal market conditions, sales typically peak in the spring. Buyers and sellers alike often wait until spring to list their homes for sale and find a new property. Due to the pandemic, spring market was shut down. Where traffic typically tapers off in the summer, we’re seeing a catch up of anyone who planned to sell but couldn’t or wasn’t comfortable during the lockdown. This shift in market to the summer, in addition to new buyers taking advantage of the interest rates, has led to a very active summer real estate market.
Real estate has remained largely unaffected by the pandemic. While sales did slow down during the lockdown, prices have not decreased in the Central Florida real estate market. There were many predictions that the real estate market would crash similar to the 2008-2010 recession. While we may see a slump in the future, the real estate market has remained steady through one of the tumultuous economic periods in modern history.
The concern over economic instability has an impact on some market segments. There are buyers who are waiting for lower prices and sellers who are worried they won’t in the future get as much for selling as they will right now. Overall, our market remains strong and continues to see stable appreciation.
World events have a direct impact on the way we make decisions. The decision to buy or sell real estate is no exception to that impact. Despite a whirlwind of a year, 2020 has not curbed the strength of the real estate market in Central Florida or the value of homes in our market.
The stability and appreciation through difficult times highlights that investing in your home and real estate is a great way to build wealth and security for your family.