Before the COVID-19 pandemic, workers tended to buy homes near cities to be near their jobs. This resulted in people mostly living in apartments and condos. However, now that is changing and more people are leaving cities for the suburbs, causing housing market prices to rise.
Some homes have more than doubled in value recently, as the market gets hot. The demand for homes is outpacing the supply, and people are getting desperate to find a place they can be comfortable in. Working from home has created new demands for good homes.
Keep reading below to learn more about the housing market and how it can affect you.
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Housing Market Prices Are About to Change a Lot More
If you think that the housing market is wild now, just wait until some new developments hit. A federal eviction moratorium is about to expire, and more people are about to lose their rental homes. And landlords will want to seize on the hot housing market to maximize profit.
A flood of houses may hit the market, helping meet the demand for houses. However, that does not necessarily mean prices may fall from their record highs. Instead, the market may stabilize around a new price as landlords demand profits for renovations and money lost during COVID-19.
So even though they spiked, they may not fall even as the market gets less wild.
Location Matters Even More Now
Whether you’re buying or selling a house, your location matters. In Knoxville for example, where there isn’t a very dense urban center, prices are nearly doubling. People are forgoing basic things like a home inspection just to land a house.
Meanwhile, in cities like Pittsburgh, sellers can take advantage of new programs like “direct to seller” to get rid of their homes. And since the market is giving such an advantage to sellers, they will almost always profit. You can find more information here about the market in urban centers.
While selling a home may be easy in the current housing market, buying is another story. Not only are the prices of homes incredibly high, but the market is also filled with first-time homebuyers. This is partly due to a generational tide, as millennials start spending money saved on new homes.
There is also a federal program giving first-time homebuyers thousands of dollars to help them cover down payments. While it helps them financially, homebuyers are also making tons of first-time mistakes. Some are choosing not to get a home inspection, or are sacrificing amenities for the sake of a contract.
Make sure not to sacrifice the basics if you plan on buying a home. Get something that you can see yourself living in, and make sure you won’t need to pay too much to renovate or fix it.
Read Also: SHOULD I RENT OR BUY A HOUSE IN CHICAGO, IL
The Pandemic Changed Everything
COVID-19 did more than just cause housing market prices to fluctuate wildly. It made people pick up everything they had and find new places to live. As people lost loved ones and struggled to make rent, they realized their lives would change.
But the most significant change right now is the housing market, with almost every getting increased home value. And to learn more about the pandemic and the housing market, just keep reading our website here.