When the U.S. economy fell into a coronavirus-induced recession, and millions lost their jobs, the real estate market expected a flood of homes for sale. However, months after the emergence of the coronavirus, homes for sale are still fewer, specifically 20% fewer than they were at this time last year.
Skylar Olsen, senior principal economist at Zillow said that there are signs that buyers are showing up again. Pending home sales and mortgage applications from people intending to buy, temporarily halted in March, but then snapped back quickly. Also, online searches for homes, which may be a mix of browsers and serious buyers rose to 50% above previous levels.
The rise of home buyers
While there aren’t many available homes for sale to meet the growing needs is rapidly becoming a challenge for the housing industry. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) recently said,
“There is no shortage of hopeful, potential buyers, but inventory is historically low.
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[…] tighter competition this year. This is mainly due to historically low mortgage interest rates and shortage of home supply. The suddenly increased migration attributed to remote working during the pandemic has added to the […]