2020 was a year like no other, and it shifted Real Estate in a way few predicted!
In March of 2020 fueled heavily by the unknown an emerging buyers market was forecasted. Lenders predicted elevated interest rates beginning in Spring of 2020, set to carry into the foreseeable future. We saw an ever so slight dip in sales at the onset of the pandemic in late winter and early Spring of 2020, however as home inventory decreased and interest rates remained historically low, demand soon soared. This leads us to 2021, a competitive market where low interest rates, low inventory, and high demand remain.
A few factors that have increased housing demand. For those with school age children many were home, space got tight and this has led many families to consider the purchase of larger homes. Working remotely (telecommuting) has been a huge factor. Remote Employees have had the choice to move to desirable more affordable areas of the country. The NC Triangle checks those boxes.
Demand remains high as some buyers delayed their home purchase in 2020 due to future uncertainty. Families search for larger homes as they fear a potential return to children learning from home. Apartment and Condo residents strive for single “family” homes as exposure to potential viruses is less, and technology has increased buyers’ ability to tour homes and purchase virtually creating ease and assisting in fueling the market.
High Earners dominated the 2020 market as they saw less impact from the economic distress of the pandemic. According to the National Association of Realtors the median household income of First Time Home buyers in 2020 was $80,000 up from the 2019 average of $68,703. Young Adults led the 2020 home buying surge with Millenials making up 38 percent of the home buying market.
Attom Data Solutions found that nationally home values rose at an...
