With the Covid-19 outbreak, some industries were affected more than others. While it might be evident that during the pandemic, the disinfectant manufacturing sector is thriving, it’s not too obvious how the real estate industry is currently holding. One thing is sure; people’s preferences in terms of housing and living environment have changed.
The economic shutdown caused damages across multiple economic sectors, and some businesses were not able to recover and unfortunately shut down. However, the housing market has seen unexpected upturns in some regions throughout the US. Given the context in which lockdown is imminent and remote work is rapidly growing; there has been a noticeable shift in priorities for homes.
Worldwide, people try their best to keep Covid-19 out of their homes, and with prolonged stay-at-home orders and a remote work environment, ample indoor space seems to be in high demand. Cities that were once the pinnacle of urban living are now seen as health hazards, and restaurants, bars, entertainment venues, and other attractions that draw people toward the city life are, now, pushing the population away.
Cities such as New York and Seattle were notorious for the high housing demand, but now, they are no longer on people’s minds when it comes to housing. That is why some of these cities rank high on our list of areas impacted the most by the 2020 pandemic. On the other hand, some housing markets have experienced a surge in demand during quarantine, and we are about to address some of these areas. Here are some of the cities with the most remarkable rise in home sales during the 2020 pandemic.
Post-pandemic rebound for the housing market
Some of you are more worried that urban living will never be the same. Don’t despair! The economy in the metro areas hit harder by the pandemic is going to rebound. The real estate industry is slowly mending in these areas. Before we talk about the cities that have experienced a surge in home sales during the 2020 pandemic, it is only fair to address the housing market’s post-pandemic recovery. Are we going to experience one? Certainly!
Statistics suggest that some metros are going to experience a faster rebound than others. This is also because the Midwest sustained a light Covid-19 blow while the East was more affected by the outbreak. On the other hand, housing markets in the metropolitan areas that are more rural and didn’t lock down, fair better in terms of housing activity.
Meanwhile, news of the Covid-19 vaccine is starting to shift the balance of the real estate market. If the immunization seemingly ends the pandemic, the soaring demand for housing in certain areas will fuel other parts of the country. The end of Covid-19 is not going to affect all housing markets equally. What was known during the pandemic as a hell of a city might prove to be a hell of a bargain in a post-pandemic situation.
Seattle was one of the cities heavily affected by the Covid-19 outbreak in March but since then real estate has made a rebound. With a 2.6% increase in median home prices from month-to-month, about 2,700 residences switched homeowners, and listing real estate agents in Seattle WA added about 3,500 new listings to the market.
Further south, the Texan city of Austin wasn’t affected very much by the pandemic because of the popping technology sector. Companies such as Google, Apple, Dell, and Amazon set foot in the area, attracting workers from all over the country and increasing the housing demand. With the Covid-19 outbreak, realtors in Austin TX have declared a drop in sales contracts by a mere 2%, and this is mainly because work is abundant in the area.
One of the most remarkable post-pandemic recoveries is held by the capital, Washington D.C. Home sale contracts increased by about 150% after the real estate market took a heavy hit of about 50% lower home sales compared to the pre-pandemic levels. Real estate agents in Washington DC felt the heavy impact of the housing market early on during the pandemic. As things settled down, the housing demand went through the roof, reaching all-time highs.
Other cities deemed as “boom markets” because of their recovery are Tampa FL, Phoenix AZ, and Salt Lake City, Utah.
Cities where home sales peaked during the 2020 pandemic
There are a couple of indicators that might explain why these cities have experienced a real estate boom during the pandemic. Measuring the economic strength of a city relies on a couple of factors such as unemployment and productivity. A city with high unemployment rates might suggest that many businesses in the area fail to keep up with their expenses during Covid-19 and are forced to reduce their staff to keep the business going. Also, going out of business is leaving many people without a job and therefore increasing the unemployment rate.
Many of the cities with the most remarkable surge in home sales during quarantine are spots advertised as vacation destinations or suburban areas. Many home buyers were looking for an escape from the urban dwelling. With an increased demand for housing in quiet, spacious, and peaceful atmospheres, more people are moving away from the bustling city center. All these factors account for the surge in home sales in some of the following cities.
Show Low, Arizona
Show Low’s real estate market shows no signs of slowing down when it comes to home sales. The monthly average home sale rate has increased by about 35% during the pandemic, and an average number of 64 new listings are being added every month. According to Zillow, the median home price as of December 2020 stands at around $276,000, and since March, the median value has increased by $26,000.
Cary, North Carolina
Inside the Research Triangle Park, the real estate market is just as booming now as it was before the pandemic. Cary NC might not be one of the cheapest cities in the Triangle Region, but it certainly has one of the most desirable housing markets in the area. Get in touch with our real estate agents in Cary NC, and you will soon find out that from March to November 2020, the median home price has increased by about $15,000. Thanks to the hi-tech research park, there is an abundance of jobs that attracted people to the area, increasing the housing demand.
Moving to the Sunshine state, we have the lovely lakefront town of Okeechobee FL, which has experienced a massive increase in home sales during the pandemic. The average rate of monthly home sales went up by almost 40%. Since it is a small town of nearly 6,000 people, the statistics are pretty stunning, and the median sale price for a home in the area is close to $160,000, according to Zillow.
Fort Lauderdale, Florida
Staying in Florida but moving close to the southeastern coastline, we have the beautiful city of Fort Lauderdale. The real estate market of this sprawling coastline city hasn’t slowed down during the pandemic. In fact, it is quite the opposite, as home prices spiked in December at a median home value of about $360,000, and there are no signs of stopping. Realtors in Fort Lauderdale FL have experienced a prosperous housing market in the region during the pandemic, and comparing it to last year, prices increased by about 10%.
While some real estate agents might find it challenging to sell a home during the pandemic in the metro cities, others find it easy in a town like Indiana, PA. With a median value of about $160,000, the average home sales in Indiana have increased by about 45% during the pandemic. With an average of 53 new listings per month, the real estate market of Indiana is definitely taking off in the right direction.
The outbreak of covid affected the real estate market in different ways throughout the US. Housing used to be in high demand in the big cities causing home prices to skyrocket through the roof in what was a very competitive market. However, with the pandemic, many people shifted their attention towards smaller towns, wide spaces, and suburban living. For that reason, the cities presented above try to highlight the new trends in some of the towns and cities throughout the US.
Things won’t stay the same forever since many metropolitan cities hold a strong job market that sustains their economy, and in a post-pandemic situation, things will balance out for the real estate market. With the release of a vaccine, we can look forward to 2021 and experience a welcoming end to this unusual year.
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