Although the real estate market is one of the areas experiencing significant changes, Ali Ata believes these adjustments will continue to reshape the entire market throughout the 2020s. If businesses want to survive, they need to restructure and accommodate the definite changes in the market. It is best to take the lead and adapt early since the time element is more critical now than ever.
But what is the current state of the real estate market? Has it recovered from the blows that this pandemic brought to almost all areas of our daily living?
After a near standstill, Ali Ata believes the real estate market is now starting to recover as the United States of America enact their reopening plans.
Some reports show a recovery index, indicating growth in new listings, asking prices, and online search activity. Although the index does not measure completed sales, impressive gains in inquiries and prices spur optimism and raise several significant market values.
More than a quarter of the 50 largest markets reached or surpassed their market activity at the beginning of the year.
So what is fueling the recovery? Ali Ata believes it is the eager property hunters equipped with an increased buying power. The record-low interest rates are serving as the driver in producing quick sales and higher prices.
Ali Ata believes that supply remains the vital missing piece in the market’s recovery, although home sales’ pace now recovered as the inventory moves faster than this same quarter last year.
Many of the U.S.A. path housing markets staged a surprising comeback after the pandemic threw a hard blow into home sales and rentals. Ali Ata believes that the path to this initial recovery was spearheaded by the increased demand from buyers, followed by a price growth recovery around early June. Although growth in supply continues to improve as buyers eagerly wait for more new listings, it remains below average seasonal pace.
Although reports show recession, Ali Ata believes that recovery milestones are further proof that buyers, like everyone else in the market, will persevere through the most significant threats in the market. Disruptions during the spring also provided the summer homebuying season an artificial boost. An extended pandemic and its economic aftershock pose tremendous risks to the market. The recovery benchmark may have been surpassed, but the question now is whether the market will sustain or improve more for the next few months.
References:
https://www.nytimes.com/2020/07/23/realestate/real-estate-market-coronavurus-recovery.html
