We are in the middle of the first truly worldwide pandemic in a century.
The economy is returning the worst unemployment numbers since the Great Depression of the 1930s.
Businesses are closing, reducing their workforce, and economists have their hair on fire.
So… why is the housing market going like gangbusters?
Like so much of what we’re experiencing in 2020, it doesn’t appear to make a lot of sense. From actual experience in the Baltimore metro market, and discussions with real estate agents in other places, there simply are not enough homes on the market to meet current demand. Prices are going up, multiple offers are commonplace, and I’m hearing of premiums over list price that are being offered closer than ever to what we experienced in the housing boom of this century’s first decade.
A recent US home sale report from ATTOM Data Solutions reported that in the second quarter of 2020 home sellers averaged a $75,971 profit on a typical sale. That result was fairly widespread, too, citing rising profits on home sales in 81 of the top 104 metropolitan areas in the the US.
Even second home sales are thriving in many places, as families with the assets to do so are looking for secure locations for vacations and family time that are not subject to COVID concerns, such as sanitation practices and prolonged exposure to other people who might be shedding the virus. (That’s why RV sales are going through the roof, as well.)
Is this all a reaction to the feeling of vulnerability to strangers? We also have been spending a lot of time at home for the last six months, and perhaps becoming better acquainted with what we do NOT like about where we currently live. Interest rates have been artificially dropped because of the economy, so the long promised rise in borrowing costs have not come true.
If you have a property to sell, this is the best of times, despite it seeming like the worst of times. Let me know if you need real estate services. I might not be able to tell you why things are happening, but I’ll certainly help you navigate the roller coaster.