Six months into the COVID-19 pandemic you may be wondering how the real estate market is holding up. At the beginning of the year, it was unfathomable that the world would shut down, entire industries would be disrupted, and the face-to-face interactions we have with our peers would be changed.
Top of the list of concerns was the real estate market. What happens when hundreds of thousands of people lose their jobs and are unable to pay their mortgages? Will we see another 2008-2010 recession?
We’ve worked diligently to keep you up to date with the market, and at the six month mark, it is time for the latest information.
To many people’s surprise, the real estate market has stayed strong over the last six months. Though listings slowed early on, hungry buyers drove the market into a strong seller’s market. Many homes under $500,000 sold in multiple offers as there were significantly fewer homes available for a growing number of buyers looking.
As Central Florida began a structured re-opening of many businesses and restrictions eased for public gatherings, homeowners became more confident in the market and began listing their homes for sale. The increase in listings has helped stabilize the market, though some price ranges are still experiencing a significant shortage. Despite overwhelming strength in home sales, there are still many concerns about the future of the market. Will there be a real estate market crash or will homes values continue to appreciate making it more difficult to get into the market?
Mortgage deferrals and short-term rental properties are significant factors in influencing the market over the coming months. Mortgage deferrals gave homeowners the opportunity to keep their home without defaulting on their mortgages if their job was lost due to the pandemic. However, many of the deferrals were only for 120 days and there are only speculations as to how the next few months will play out.
Short term rental properties were impacted by a lack of tourism. This led to questions about whether or not many investors would sell their properties to compensate for the lack of income. So far, we have not seen a surge in short term rental homes becoming available, however, there may be a greater impact come the winter, Central Florida’s highest volume tourist season.
Low interest rates have encouraged many first time buyers and those looking to lock in a better price to look for their next home. As prices in our market continue to climb, it’s a great time to get into the perfect property.
Through the thick of the pandemic and the uncertainty many have faced, the real estate market and home sales in Central Florida have continued to grow and surge. Real estate is a great investment, whether it is in your own home or an income property.