After the initial few months of braving the coronavirus (COVID-19) outbreak, the US real estate market has restored its traction. From home showings to open houses, the sector has resumed its activities in full force since this summer.
According to reports released in October 2020, the market has gone beyond picking itself up after the pandemic. In the month of September, the overall US home sales touched a staggering amount of 6.54 million units. This seasonally-adjusted annual rate shattered a 14-year record of home sales.
The Market’s Performance Surpassed Expectations
Before the September statistic was posted, the month of August had recorded sales of 6 million units. This figure was later adjusted for accuracy and brought down to 5.98 million units.
After seeing the performance in August, industry experts had projected that September might noticeably grow past those numbers. At the time, the approximate growth was poised to be 5 percent or 6.3 million units.
But the US real estate market surpassed expectations and ended up with the astounding figure of 6.54 million units. Due to this reason, these September results came as a shock to many experts. However, they also proved to be a pleasant surprise during the current economic climate.
Much of It Has to Do With Low Mortgage Rates
US home sales went through a short dry spell during the initial period of COVID-19 lockdowns. As these initiatives went on and off across various states in the country, the real estate sector ran into hurdles.
But when restrictions such as virtual showings were lifted during reopening processes, realtors around the country got back to work. During this time, the Federal Reserve System cut its benchmark interest rate to near zero. This also had an effect on overall mortgage rates and brought them down to record lows.
When pent up demand was combined with low mortgage rates, these factors created ideal buying conditions throughout the country. As a result, sales rose up in various states, especially in those areas that had competitive pricing and inventory.
Inventory is Running Short
As the pandemic rages on, more and more Americans are embracing the idea of social distancing. With this in mind, they are looking for homes that make for optimal work from home and remote learning experiences. Additionally, they are preferring larger spaces in order to fulfill their in-home entertainment and recreational needs.
But as these listings are nabbed off the US real estate market, the already-tight inventory is facing a shortage. According to statistics, there were only 1.47 million homes on the market in September. This is the lowest inventory that the National Association of Realtors has recorded since 1982. If the market continues at the same pace, it may run out of current listings in less than three months. This is also the shortest projection for such an outcome since 1982.
This means that whether you want to buy your first home or move to a bigger space, you better act fast. Fortunately, with mortgage rates still staying low, you have all the opportunity in the world to complete your ideal purchase. As long as you reach out to a reliable realtor in your area, you can find your dream home easily.
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