Now that March is here, so is the two-year anniversary of when the COVID-19 pandemic began in the United States. The United States began shutting down due to the pandemic around March 15, 2020, and it was a time in life that none of us are sure to forget. We can’t believe it’s already been two years, where has the time gone?
Have you ever wondered how the pandemic altered the housing market here in Iowa? We’re sure you noticed a national shortage of housing a most houses selling for well above their listing price in the last two years. This was due to low interest rates, high demand for housing due to “social distancing and stay-at-home orders” and other pandemic conditions.
The pandemic was a great time to sell a house – sellers were greeted with a quick sale and typically for more than their listed price. Most buyers offered list price or above due to desperation to close a deal and secure a home. Selling a property during the pandemic was successful due to the high demand for housing and a low supply in general. New construction also slowed during the height of the pandemic, which made it even more plausible to sell a home.
Buying a home had its perks during the pandemic too, as many buyers looking to purchase a home put their plans on pause due to the stakes of the pandemic. This created less competition for buyers who were seriously looking for homes. There was also a higher likelihood of buyers being able to negotiate better conditions, such as an earlier closing date, or the seller fixing a few pesky things around the house. In addition, it was a financially stable choice to buy or sell, due to fixed mortgage and interest rates being at an all time low.
Things in the housing market have been constantly fluctuating over the past two years. This past June of 2021, homes were selling 46% faster than in June of 2020. Homes were selling quickly and there was an increase in homes for sale on the market – a true seller’s market. This past November, we saw a slow down in the housing market which is expected to last until about the spring or summer of 2022, when it is expected to reach pre-pandemic levels.
When the pandemic hit, the world didn’t stop. We quickly had to adapt and change the way we did what we would’ve thought as everyday things before the pandemic. The virus changed many aspects of our lives and the housing market was no different. The situation required a pivot in the way the housing market bought and sold homes. We’ll let you decide if this was a good or bad thing, but it definitely has changed the housing market for months and years to come.
If you enjoyed this blog and want to read more about the pandemic housing market, check out How To Market Your Property During COVID-19. If you’re looking to sell your home, head over to Why We Recommend Every Homeowner Should Have A Verbal Consultation Before Selling and learning more about our staging services. Whether you are looking to sell your house or redesign your current home to better fit your needs due to pandemic effects, contact us about a FREE complimentary 30 minute consultation! Give us a call at 515-986-1895 or shoot us over an email at office@elizabetherincesigns.com to get started.
Until next time!