I’ve been scratching my head since late February or early March about why the housing market has been doing so well during this crazy coronavirus year. For the first time since I’ve been running our South Carolina operation, I was asked to re-do (reduce) my 2020 budget earlier this year. As it turns out, the original budget my crystal ball predicted last October is closer to reality than the reduced budget from April. In fact, we’re having a record year.
How can we be having a record year in the real estate industry when jobs are being lost and small businesses are closing? Our real estate closing offices are running at full pace, vacations are few and far between, lawyers are trying to hire closing staff members to alleviate the pressure and are finding that task next to impossible. Most lawyers and paralegals are attempting to hang on for the ride, knowing a slow-down will likely occur at some point.
One major factor attributing to the frenzy in the market, of course, would be the record low mortgage rates we’ve experienced this year. Another factor may be the legislative efforts to prop up paychecks and the economy until we have a solution for COVID. Additionally, I keep hearing tales from South Carolina law firms that clients are sick of the houses from which they’ve been working at home and either want to renovate or relocate. I get that! Finally, we hear our friends from the north want to relocate to our sunshiny, beautiful state. I get that, too!
Now, autumn is near, a time where the speed of our business typically slows. But we’re not yet seeing a slowdown. I don’t want to jinx us. That slowdown may yet hit us in 2020. But I read an interesting article from Forbes dated September 11, entitled “The Fall Real Estate Market is Abnormally Hot as Mortgage Rates Break Records.” That article is linked here for your reading pleasure.
This article quotes a Zillow economist who said demand in housing continues to be fueled by low mortgage rates. Who would have predicted the thirty-year mortgage rate would be under 3% and the fifteen-year rate would be under 2.5%? Additionally, home prices continue to increase as inventory shrinks. It’s clearly a seller’s market!
Read this article, real estate friends, to see whether you think it holds true for our fair state. If so, let’s all buckle up for the ride!
2 thoughts on “What’s up with this crazy housing market during a pandemic?”
It’s interesting that mortgage rates are record low this year due to COVID. I’m looking to buy my first home since I’m 30 and still single. I’ll have to take advantage of this crazy market and find an agent that has their finger on the market pulse.
I found it interesting when you said that home prices continue to rise as the market shrinks. My wife and I are wanting to buy our first home and we’re trying to see if prices are still down due to COVID. I’ll be sure to do more research and ask a few agents for their expert advice.