Get Ready for the Next Real Estate Surge!
Several notable real estate experts have announced that enormous activity is expected in the housing market in the second half of 2020. If you’ve been dreaming of a new home for your family, this could be the perfect time to get ready to make your move.
Why is a real estate boom on the horizon?
Instead of a perfect storm, several powerful trends are coming together to create a very favorable atmosphere for home buyers and sellers. Historically, housing markets have bounced back strongly after serious financial downturns, and we’re already seeing many of the same signals today.
- Low interest rates: During financial emergencies, interest rates often drop to encourage big-ticket purchases. These reduced rates frequently continue well into the economic recovery. The Federal Reserve has indicated that low rates are expected to remain in place for months, which can translate into lower monthly payments and greater buying power for home buyers.
- Government support: Stimulus payments, special lending programs and expanded benefits for affected workers have helped many Americans stabilize their finances. These efforts often set the stage for increased confidence and a rise in real estate activity as families feel more prepared to purchase a home.
- More people working from home: With work-from-home arrangements becoming more common, many buyers are looking for larger or more comfortable homes with dedicated office space. City residents are also considering a move to less crowded, more spacious suburbs, which further boosts demand in suburban communities.
- Limited housing inventory: The supply of homes for sale was already low at the beginning of 2020, creating a strong seller’s market. When the coronavirus pandemic hit, many sellers stepped back and delayed listing their homes. Even as the economy reopens, some owners are still waiting, which keeps inventory tight and supports rising prices.
Well-known real estate investor Barbara Corcoran, host of ABC’s hit show “Shark Tank,” describes these trends in more detail in this article on the upcoming housing surge. She notes that as the country continues its reopening efforts and more buyers enter the market, home prices are expected to move upward.
Financial expert Dave Ramsey also predicts a brisk return to nationwide home sales. His overview of the post-coronavirus housing market explains why buyers should be prepared to act quickly and strategically in competitive areas.
What this means for new construction buyers
Things are especially promising for buyers interested in new construction homes. Some builders paused operations during the peak weeks of the coronavirus pandemic, reducing the number of brand-new homes available. At Ernest Homes, we embraced our role as an essential business and continued building throughout the quarantine period. That allowed us to stay on schedule with both our to-be-built homes and our move-in ready featured homes for non-contracted buyers.
You can learn more about the strength of the housing market and the expected building boom in this CNN article on housing and the economy. Together, these insights show why buyers who prepare now will be in the best position when activity accelerates.
Still have questions about the real estate market for the rest of 2020 or about new construction homes in Savannah, Richmond Hill and the surrounding Coastal Georgia communities? Call or message the Ernest Homes sales team today—we’re here to share our knowledge, guide you through the process and help you find the new home that’s right for your family.
