Why is the Housing market so hot?

With the temporary pause we had during covid, the housing market has skyrocketed in the last month.
A report from real estate brokerage Redfin shows 27.4 percent of Redfin.com users looked to move to another city following the covid stay home order. Many millennial’s are now looking for more spacious homes, with larger rooms and offices as well as open large backyards in order to accommodate their work from home status.

And the housing market is hot. For sellers this is a time where homes are flying off the market. More people are also putting their homes on the market at a rapid pace, in order to move into larger homes as well.

In some cities, even with the pandemic, prices are rising.

In many situations, homes are also getting multiple offers, which for the seller is good!

Then there’s the demand for more housing. In 2013, Lawrence Yun, chief economist for the National Association of Realtors, said that 1.4 million homes needed to be built to meet the demand for that year. Each year we don’t build enough, we fall further behind, and there still aren’t enough new homes being built to keep up with demand.

As of this past June 2020, we were at 1.186 million housing starts, which is 17.3 percent above the revised May estimate of 1.011 million but 4 percent below the June 2019 rate of 1.235 million. Between the hundreds of thousands of homes that went into foreclosure 10 years ago and were bought as rental properties, the homes that naturally reach the end of their use and need to be replaced, and the much tougher challenges face today when building single-family homes there are not enough homes for buyers.

As for the economy, it’s in tough shape here and around the world. Airlines are hemorrhaging money; tens of thousands of restaurants have closed permanently, and those that are staying open have a hard time making enough money without eat-in diners; entertainment venues have no business; and sporting events are just starting up without fans in their seats. There’s a great deal of uncertainty as to what will happen in the near future however one of the major things we do not have to worry about is the housing market!
.
.
.
Source: https://www.census.gov/construction/nrc/pdf/newresconst.pdf
.
.
.
If you are looking for a home, or would like to purchase a home, please call me 248-379-6651 Caron Koteles Riha. I would love to work with you on the buying or selling side!

.site-title {blog-transform: lowercase;}