U.S Real Estate Trends

Written by Kimberly Evans Posted On Friday, 27 November 2020 21:05

Real estate is one of the hotly followed sectors simply because everyone needs a place to live, so many people are always looking for the best time to buy a house. Likewise, real estate is one of the sectors that offer high rates of return on investment, so real-estate investors are always following the trend to know when they should invest and where.

This is why news and trends related to real-estate are followed by many sections of society. This popularity also explains why news channels like CNN, NBC, ABC, Fox News, and other air regular panel discussions and other pertinent news on their channels. You can click here to watch the latest real estate news.

In the meantime, here are some trends in the U.S real estate market that may interest you.

COVID-19

The COVID-19 pandemic has brought down all sectors of the economy, and some countries are slowly recovering from it, as they come out of the mandated lockdown. One of the sectors that have been badly hit due to this pandemic is real estate because income expectations remain weak when compared to the economic euphoria that existed in the early part of 2020. 

This has brought down the demand for real estate properties, but this is expected to be temporary since there are no real structural changes or problems with the underlying economy. It is expected that when businesses open as usual after the vaccine, everything should come back to normal. 

Low-interest rates

Central banks and financial institutions around the world are striving to keep the interest rates low as a way to boost the economy that has been lagging due to the pandemic. Such low-interest rates are a big motivator for people to invest in real estate, so this is a positive sign that can bring this sector back to pre-COVID levels soon.

Positive Surveys

The Fannie Mae’s Home Purchase Sentiment Index or HPSI in short is an index that shows the attitudes, intentions, and perceptions of both the buyer and seller and is a good measure to understand where the housing market is headed soon.

This index increased by 3.5 points in September 2020 and has been on the upward trend since the late spring of 2020. Though these numbers are down by about 10.5 points when compared to pre-covid levels, the fact that it is increasing rapidly is a sure sign that recovery is around the corner. 

Another such survey is the report from Realtor.com that shows that the Housing Market Index in October 2020 was about 12.4 points more than what it was during the pre-covid levels. What this essentially shows is that the seller confidence is high, which means, many people are ready to put their houses for sale in the market as they believe that they will find buyers.

Likewise, the buyers’ confidence is also increasing, thereby indicating that a balance in this market is likely to happen soon.

You can follow more such trends, future forecasts, and other pertinent information by watching the news channels. 

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