The real estate market in the US, like many other markets, suffered a blow due to the COVID-19 pandemic. Studies show that residential real estate sales dropped last year to levels not seen since the financial crisis of 2008. Another study confirms that the real estate market saw a significant decrease in transaction volume last year, meaning fewer houses were bought and sold. This downtick is mainly credited to lack of supply due to the uncertainty in the market.
However, recovery has been ongoing since last year, and it’s interesting to see how the real estate is recovering this year. If you’re looking to buy a new house or sell your house, you’d be interested in reading further about real estate’s recovery from COVID-19.
Demand Has Recovered, but Supply Remains Low
While the demand for real estate is back, the supply of houses for sale remains dangerously low. As compared to the last year, there are 50% fewer houses available for sale. What this means for prospective buyers is that there are not a lot of options available.
If you’re not finding a house that fits the bill perfectly, don’t be surprised. Lack of choices and rising real estate prices mean that your options are limited. Buyers should snap up a good deal if they find one instead of waiting for a better one.
Prices Rose During COVID-19 And Are Still Rising
COVID-19 led to bearish prospects in pretty much all markets worldwide, fueled by uncertainty and restrictions of the pandemic. However, when it came to the US real estate market, the sector saw sustained growth in prices throughout last year.
This trend has also continued in 2021, further fueled by limited supply and increasing demand. The asking prices have surpassed the pre-COVID baseline as per a report from Realtor. Since the supply of houses for sale is not expected to grow much, the prices will keep rising.
This means that waiting for the prices to drop may not be a good idea for prospective buyers. For house sellers, this is the perfect time to enter the market as the supply is short and the demand keeps increasing!
Houses for Sale Are Leaving the Market Quicker
Considering the rising demand and asking prices, and low supply, it’s not a surprise that listed houses are leaving the market quicker than before. Realtor reports that houses are being sold 6-7 days faster than a year before.
What this means for real estate buyers is that there’s simply no time to think about it! If you’re interested in a property, go for it before the house is snatched. The market is fast and will remain so for the time being.
In conclusion, while the supply remains low, the real estate market in the US is recovering slowly but surely. However, as the demand increases, so will the prices, so the time to buy your new house is now!
If you’re looking for a new house in North Carolina, Phillip Fehler, a Broker of Fathom Realty, is the man to contact. Phillip Fehler offers real estate services in Fayetteville and Fort Bragg, NC.