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The NEW Normal in response to the COVID-19 Pandemic

The NEW Normal in response to the COVID-19 Pandemic

It’s been said that the best way to predict the future is to invent it. To that end, I’m going to tell you about an exciting trend in real estate: the new normal.

The way people want to live has changed. People want walkable communities, not just single-family homes. They want to be able to do everything they need in one place—including work from home. And they don’t mind sharing communities with others who share their values.

It’s clear that home prices have been rising in recent years. In the last year, prices have increased with the average price of a home on the market being $417,000 in November. The resulting increase in home equity levels means that homeowners are in a great financial spot with their property. 

On the flip side, interest rates are up. This means that borrowing money to buy a home is more expensive, which can impact home prices. If you are planning on buying a house, this may affect how much you can borrow and what kind of mortgage you qualify for. Higher interest rates also affect how much you can save as well as how much money you have for investing in real estate (and later selling) properties.

When you’re a seller, things are looking pretty good. You have a lot of leverage and control over the situation:

  • There’s a shortage of homes on the market, so buyers need to compete for your home and will be more willing to pay top dollar to get it.
  • Sellers can afford to be picky about who they sell their property to because there are so few homes on the market. They can wait until they find the right buyer or accept whatever offer they get without worrying that they’ll never find another buyer.

In conclusion, the real estate industry is very dynamic and it changes with the change in economy. What people want out of their homes has changed and so have the prices. Interest rates are up and we are seeing more buyers in this market than sellers. This new market in response to the Covid-19 pandemic has raised a lot of questions for sellers and buyers alike. Do you have questions? We’d be happy to chat with you! Reach out: (317) 572-5589