How the Pandemic Impacted Real Estate Two Years Later
Many of us have probably taken some time in our own thoughts to wonder what the world might be like today if the pandemic never happened. What would be better? Would there be things that would actually be worse? The last couple of years has had a large impact on every person on the planet in varying ways.
It can be difficult to look at the current situation of many different things and think that there has been nothing but bad come out of the last couple of years resulting from the worldwide chaos. Opening up a web page full of news headlines almost reads like we are spiraling into more negativities all the time. One of the biggest of them pertains to the economy and different aspects of it.
If we give it just a little bit of thought there are some positive changes that have occurred over the last few years as well. For example, there are many more Americans able to retain some sort of remote work. This has allowed more American workers to achieve more of a work-life balance. It has also taught some of us the importance of making sure we have a significant rainy-day fund. There are more Americans making sure that they have a stronger financial foundation than before.
One of these areas that the pandemic has had an impact on is the real estate market. Some were completely shocked by the direction that real estate went while some may have been surprised but upon thinking about it realized that what has happened makes sense.
What if the pandemic never happened? How do we think the market would be different?
Considering if the pandemic never happened home prices or home values might not have seen the steep increase they have over the last couple of years. Much of the reason for the price increase is attributed to the supply and demand over the last couple of years.
There have been many different variables and large changes in the numbers over the last couple of years across the real estate market one number has stayed pretty steady and that is the low inventory of homes. The lack of inventory has been a significant driving factor in competition amongst buyers and resulting in many more buyers competing for the same homes.
It is said that much of the reason inventory remained low again with those that would consider selling their home holding off. The biggest reason for this was attributed to safety and concerns driving homeowners to hold off on listing their property. Many people that would have sold their homes instead decided to hold off with so many unknowns about health, safety, and financial stability.
Some speculate that if the pandemic did not throw a twist into selling a home that inventory may have remained more steady allowing for home prices to increase but not steeply incline.
When is it predicted that the housing market will balance back out?
One of the largest contributing factors to home prices remaining higher is that the inventory has remained low. Even as we get back to somewhat normal and we learn to navigate the world with this new to us illness there are still many reluctant homeowners listing their homes for many different reasons.
It is predicted that home prices will continue to increase through 2022 but maybe not at quite the pace that we saw in 2020 and 2021. Even with that and an increase in mortgage rates, it is still more affordable to purchase a home right now as compared to purchasing when mortgage rates may be much higher in the future.
For more information on purchasing a home in Columbus and surrounding areas please contact me anytime. Let me know if you have questions on buying or selling in this market.
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