The housing slowdown of March and April is a thing of the past as the real estate market rebounds in the last quarter of 2020. Here are 4 key factors driving the rebound.
Four Factors:
1. Low interest rates for mortgages. A compelling motive for purchasing a home currently is the record low mortgage rates. Prior to the March - April slow down, rates were moving lower, but when the economy went into a deep dive, the Fed lowered rates lower to reignite the economy.
2. WFH (Work from Home). Work from Home is not a novel idea but has been around for many years. During the height of the pandemic many businesses, out of necessity, were forced to restructure their operation where work from home became the viable option. Homeowners carved out office space and classroom space to meet the need. Remote home offices help drive the real estate rebound as employees look for a home with "office space".
3. Pent up demand. The number of active buyers increased while the number of active sellers decreased bringing inventories to a dramatic low. Despite the low inventories, buyers outnumber sellers and the demand for new homes has bolstered new housing construction.
4. Life events. Life goes on even in the face of adversity. People are still getting married, divorced, having children, or downsizing their housing needs. Many families are moving out of the urban areas and looking to relocate in a more rural setting.
The outlook for 2021 real estate market remains strongly optimistic and many market watchers anticipate the rebound will continue into the 2nd quarter of 2021.
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