The coronavirus has certainly left its mark on many aspects of our lives this past year. One place where it has left an indelible impact is the real estate market and industry. In particular this past year we have seen some housing activity shifts in Lehigh Valley, including an increased percentage of closed sales, a decreased percentage of available inventory and an increased percentage in median sales price.
But what does this mean for Lehigh Valley real estate and real estate as a whole? And what could an economic recovery look like post-COVID? Read on to learn more about some of the possibilities.
THE (POTENTIAL) SHAPE OF RECOVERY
Economists have given their theories as to what shape our country’s recovery might take on. While there are plenty of external factors which will influence the final way recovery looks, many models are showing a K-shaped recovery is already happening. This particular type of recovery occurs because a portion of the general population and businesses will recover faster and more fully than others which will greatly suffer.
Because of the damaging impact COVID has brought upon certain demographics, as well as industries like hospitality, travel, and restaurants and bars, it is certainly understandable why this type of recovery is happening.
INCREASED FINANCIAL CONSIDERATIONS
Keeping the current shape of recovery in mind, there are a few key considerations when it comes to the housing market. First, because many people have faced financial hardships due to COVID, there will be an increased focus on how much house people can afford. This will be a huge determining factor in the types of properties you should and shouldn’t be considering in the home search. While the interest rate for mortgages continues to be at a record low, more and more people are determined to enter the housing market either as first-time buyers or to purchase a new home.
MORE VALUE IN YOUR HOME
However, if you’re interested in selling, there has never been a better time to put your house on the market. Everywhere, including Lehigh Valley, we have seen how low inventory is impacting the market and putting sellers at an advantage. With less available than usual, sellers are finding it easier than ever to get asking price or even higher. This means that COVID’s impact on the value of homes has been positive. If you find yourself getting bored and restless as the pandemic continues to be a threat, there is a great opportunity to put energy into your home. By completing renovations, big or small, you can add value to your home that can make a huge difference when you do decide to sell.
CREATING A GENERATIONAL OPPORTUNITY
Another impact COVID has had on real estate is the opportunities it has created for different types of buyers than there would normally be. Even before COVID hit, young people were moving to Lehigh Valley. The pandemic has created an even greater opportunity for them to build a life here. With the student loan crisis still ongoing, there have been certain segments of young people who have felt unable to afford a home and saw that goal be much farther away in their future.
Because of the previously mentioned record low interest rates on mortgages that has been caused by COVID, buyer interest is growing among younger generations who are now seeing an opening for them in the market.
COVID has impacted virtually every aspect of our lives. It has also caused the housing market to grow and surge in record ways. This is true for both Lehigh Valley and beyond. It also means that buyers are looking at a large and unprecedented financial advantage when it comes to mortgage rates, and that sellers are looking at the same when it comes to selling quickly and getting their preferred asking price.