6 Major Housing Market Trends for Real Estate Investors

Since the commencement of the COVID pandemic, the real estate market has been nothing short of a roller coaster for both buyers and sellers.

Housing Market Trends

One of the major underlying drivers of these trends is a shift from big cities to the suburbs, which began far before 2020. However, the COVID-19 pandemic has hastened this process.

House Hunting Goes Digital

The pandemic has hastened digitization in all industries. The housing market is no different. Because of the pandemic and the competitive property market in 2020, some customers bought their homes without seeing them.

Relocation from Cities to Suburbs

The COVID-19 pandemic has driven suburban migration from large cities. For the next 3-5 years, the trend of people opting not to live in big cities may continue. The shift is driven by two factors: need and choice.

Overwhelming Demand for Single-Family Housing

According to realtors, home sales have grown another 10% in 2021, bringing them to their highest level since 2006. In 2020, single-family house searches reached their highest level in four years.

Real Estate Price Will Continue Rising

Current real estate trends are intricately linked. Prices for single-family homes climbed in 2020 as a result of growing demand and dwindling supply and are likely to stay high in 2022 and beyond.

Mortgage Rates Drop

Since reaching 4.94% in 2018, mortgage rates have been steadily declining. Mortgage rates set a new low of 2.65% at the start of January 2021.

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