Real estate trends growing out of the COVID-19 pandemic
Chief Economist at the Florida Association of Realtors, Brad O’Connor shared his insights in a recent webinar presented by The Fund’s Melissa Jay Murphy on Thursday, August 20. He revealed trends that were just released Friday regarding Existing-Home Sales data for July. Since the start of the COVID-19 pandemic, demand is growing yet new home listings/inventory have not greatly improved. Sales of existing listings are continuing at very high levels. Here’s a look at some of the reasons and what to expect in the future.
- At the beginning of 2020, the supply of residential listings in Florida was at relatively low levels. You can draw a line back to several years ago, when excess supply resulted in a contraction in new construction. Both situations have helped to maintain currently higher prices due to excess demand relative to supply.
- Amid the pandemic, interest rates hit an attractive low. This brought previously reluctant buyers out on the hunt.
- Millennials are playing a large role in supporting current housing demand.Millennials have historically been waiting to have children and start their families. However, millennials are finally being seen to do so. The oldest millennials are just reaching 40 years of age, and the majority of the demographic are in their 30s. They are now looking to move from apartments and condos to their first homes.
- Suburban housing is hotter than ever, which is attributed to that millennial market share, increased reliance on technology and the social distancing of the pandemic. With millennials starting families, they’re in pursuit of the classic American dream. We are seeing them begin to move from the cities to larger living spaces in the suburbs.
- The pandemic has further caused millennials to reconsider city-living and head to the suburbs. Individuals have been more reluctant to be around more densely populated areas. However, the pandemic has put a strain on living in close quarters. Families who are working from home, with children attending virtual learning, know they need more space for their own mental and emotional wellbeing.
- Millennials who chose the city life to work, live and play, realize that working from home has become the norm.
To learn more about the Existing-Home Sales data for July 2020, visit the National Association of Realtors website.
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