The US economy plummeted as the pandemic spread and millions of Americans found themselves out of work without food. No one would have predicted that at this time, house prices would become overheated with mortgage rates skyrocketing while supply for houses did not meet demand. The housing market was booming but no one could predict what lay ahead when times were hard for everyone in America; home values skyrocketed due to a lack of inventory on homes available during an uncertain economic period where many people had lost their jobs or struggled through unemployment because they couldn’t find anything else worthwhile doing besides going back into school if their employer didn’t offer extended benefits from unpaid leaves which is common among small businesses today who can barely keep up with all the new regulations.
Remember the 2008 Financial Crisis?
The international real estate market has been on a roller coaster ride for the past decade. The US housing crisis of 2008 caused prices to plummet, which resulted in many people losing their homes and feeling financial hardship from being underwater. However, by 2013 there were signs that things had begun to turn around as more Americans could afford mortgages with fair rates again when compared with home values.
In 2009, the housing market was bad. Homeowners found themselves with mortgages that were higher than their house’s worth and by 2013 signs of recovery began to show up but in 2018-2019 there has been a slight decline as well.
In September 2008, many homeowners had already lost money on homes. By December 2012 it looked like these people might be able to salvage what they’ve lost because things started looking better for home values again when some numbers showed growth after years of declining prices from 2007 until 2011.
When the pandemic took a turn for the worse and millions of people were put out of work, many lost their homes and those who could still make payments found themselves in dire financial straits.
Why do house prices go up?
House values have been on the rise for years now, but it’s not always easy to pinpoint what exactly is causing this. One of the most common reasons has to do with supply and demand…but things like recessions or pandemics can either positively or negatively affect these too! When there are more people interested in buying houses than available housing units, then house prices will predictably be higher. But one other factor that affects how many homes should theoretically exist at any given time is regulations about building new homes – which usually restricts their numbers as opposed to increasing them (at least without getting permits).
Why did house prices rise during the pandemic?
As the pandemic spread, it became more difficult for people to buy homes. The few houses that were available had higher prices because fewer buyers meant a lower demand. However, mortgage rates fell and made mortgages easier to get which led many hopeful homebuyers into a mad dash of buying before they could no longer find any good deals on their own–due in part also thanks to how easy lending was during this period (which may have contributed some as well).
With the rates on mortgages significantly lower than they were in 2008, there was a surge of people looking to buy homes. The first-time homebuyers and those using it for second properties put pressure on the housing market as many chose not to sell their current house before buying another one but instead refinanced at a more attractive rate saving them thousands of dollars each year until they could afford an upgrade or move up from starter houses into something bigger.
The real estate market was in a constant flux during the pandemic. People were unsure of where to list their homes, so they took them off the market or put them on hold for when it seemed safer to do so again. The social distancing rules inadvertently created an environment that did not support people looking at other peoples’ houses and quickly listing theirs if there had been any interest from buyers; this made finding new listings even harder than usual!
The housing industry felt all sorts of ripple effects due to influenza A/H1N1’s rapid spread across North America–some good, some bad. While homeowners decided whether or not now would be a safe time to sell their property (and many waited until after winter passed), fewer people showed
When the pandemic struck, few predicted there would be a surge in demand for housing. Home developers had let go of their employees and shut down during that time period because they were unable to get materials like lumber due to scarcity and high prices.
Looking for an expert realtor in South Carolina?
Look no further than Rebecca Wallace. She leads The Pyramid Group team that is brokered with Keller Williams and can help you purchase or sell your home at the best price!
Call 864-249-1437 now to talk about how we could meet all of your needs as a homeowner, landlord, investor, buyer/seller agent.
Office: 864-249-1437
