The total worldwide confirmed cases of COVID-19 – as of August 24, 2020, has exceeded 23,400,000 (|Johns Hopkins Corona Virus Center 8-24-2020), with more than 5.7 million cases confirmed in the United States.
The appearance of COVID-19 had all but canceled the spring selling season in the United States. At first glance, most real estate gurus held their collective breath, wondering just how bad real estate would take it on the chin – until COVID19 could be contained or eradicated with an effective vaccine.
Soon, after the initial shock of the coronavirus, it became apparent that the real estate market was showing signs of heating up, and not slowing down.
What’s so hot about real estate right now? Read on to find out.
#1 Myth – This is Not the Time to Sell Real Estate
According to the NAR, home sales of existing real estate rose month-over-month – from June to July – by 24.7%. As a result, both June and July 2020’s home sales set records for the highest monthly gain since records have been kept in 1968. These substantial home sales numbers were reflected in all regions of the United States, despite the ongoing pandemic caused by COVID-19.
At present, the real estate market is leaning in favor of sellers for July 2020, as the national inventory of available real estate fell by more than 21% year-over-year.
#2 Myth – Interest Rates are at Historic Lows Interest Rates Don’t Matter
The average 30-year mortgage interest rate fell 12 points to 3.02% from last week – hitting yet, another historic interest rate low. Twelve months ago, the average interest rate for a 30-year mortgage was 3.85%.
A $100,000 mortgage – at the current 30-year fixed rate – will cost a borrower $422.68 per month for both principal and interest.
#3 Myth – The Price of Real Estate is Falling
On the contrary, recent data reveals that home prices are on the rise across the nation. The historic low-interest rates and strong buyer’s demand have increased home prices. According to the NAR – the National Association of REALTORS, the national median home price in July was $304,100 – an 8%+ increase year-over-year.
This also marks the first time the national median home price rose above the $300,000 benchmark.
#4 Myth – Homes can’t be Toured in Person
Real estate is considered an essential sector of the economy. As such, while virtual tours are great supplemental sales techniques; however, the reality is, real estate professionals, have created safe environments to ensure sellers and buyers remain protected during the home tour process.
#5 Myth – Buyers are Holding Off on Home Purchases
According to NAR’s Home Sales Index (a forward-looking glance of home sales), existing home sales continued to show strong growth for July, its second month of significant sales momentum.
In June 2020, home sales were up year-over-year by 8.7%. August 2020 home sales jumped nearly 25% from July’s record home sales pace. Buyers are grabbing up real estate at unprecedented levels.