With the global health crisis still ongoing, citizens around the globe can confirm that 2020 has been quite a rollercoaster ride for everyone. Suffice to say, this will go down in history as more than just an eventful year.
Furthermore, this has affected the economic status and industry of each country, most specifically in the real estate market. When looking to price your home, it is recommended to settle on facts and not just hearsay. Although it is easy to get lost in gossip, evidence-based facts and data are better assurance of what is inside the real estate industry. Here are the following details to look at about how this year is affecting the price of your house:
Housing Prices are still increasing
As of March 2020, this was that month when real estate felt the first impact of Covid-19, home prices still showed growth compared to March 2019. While seemingly a low and slow 2.5% increase, it is still considered a new record high. So if you’re considering selling your house this year, chances are you will still gain a profit. However, it’s not a profit that will enable you to double the value of your house
The Economy Itself
The pandemic sure made an impact towards the state of economic status of every country there is. It is also one of most crucial factors in the real estate market. When the economy is stable, it attracts more buyers or investors. Hence why, housing prices is practically flourishing or going downhill from time to time due to the unstable economic condition the pandemic had given.
Entering the last quarter of the year, the economic status of majority of countries has been recorded to be gaining back its progressive state. Chances of selling or buying a house can be possible at the moment.
Law of Supply and Demand
This concept is significant in real estate since this is the one that sets the symmetrical price of the property. A low supply of housing can be indicative of higher prices that tends to make the market a harder ground to bid on. This can also be applied to increase in demand wherein a specific property gets overwhelming attention from buyers trying to outbid one another resulting to extensive increase in purchase price. House prices tend to be gone downhill if the economy tends to be weak with no demand for housing but with oversupply of properties.
Real estate can be similar to tourism. When investors invest in your country, they bring their own resources to increase the rates of the market. These often include cash, concrete, machinery and other equipment needed to build houses or any buildings. The lower the population of international investors, supply can decrease too which then results to affectation of housing prices
Employment ratio affects housing prices as well. If the ratio is high and stable, this is indicative that there is a high purchasing power from the employee. This then makes the buyer a great candidate for a housing. Not only does it affect the purchasing, it also affects the law of supply & demand.
Property Interest Rates
One of the greatest enemies of buyers, either cash or mortgage, would probably be high taxes or property interest rates. This then affect the housing prices one would want to purchase. A property can be affordable and just the right fit for the buyer’s budget until they add the tax and interest. This results to unfortunate events where home offers get canceled due to financial crisis.
Location Still Matters
The pandemic does not directly affect location. Since location is a major factor in pricing a home or a piece of property, then if your house is located in prime regions, the price will not be significantly affected as well. Home prices still vary from location to location, so if you’re looking to sell your home in 2020 and beyond, you can expect it to cost as much as houses around your area.
In 2019, 87% of buyers bought previously owned homes. They chose these because they had a significantly lower price than brand new homes. To illustrate that, in the same year, a new home will cost an average of $85,000 more than a previously owned home.
Status of the Buyer
In 2020, married couples still spent more on homes than singles. Status plays a significant role in the buying behavior of people. In this standstill era, although many aspiring couples had been pushing through their wedding plans despite of the pandemic, housing prices is one of the newlywed priorities. The advantage of the marriage status, however, is that two individuals are connect onto one account which makes it easier to cash buy or pay it through mortgage.
In conclusion, 2020 made a tougher market to sell a home. However, the prices are not solely affected by the health crisis that had happened. Sure, some things should be taken into consideration, but looking at the data and reality, selling a home is still possible.
To sell your house fast, the best way is to get a professional real estate agent like SnapCashOffers.com who can help you gain more prospects for the house you’re selling and even provide you advice on how to make it more attractive to would-be buyers.