September 24 2020
Despite the COVID-19 pandemic, the real estate market is going through an interesting time. Ever since their existence, there has been a non-stop evolution, having a major impact on trends. This is why it has become necessary to understand the current market trends to foresee the future.
Whether you intend to buy a home or want to sell your existing house or are into the housing market, here, you will get an insight into how the past few years have been influencing the hottest real estate market in Arizona. You will also get to know how the future is going to look like.
There were predictions for the upcoming year 2020 before the pandemic situation. It was predicted that the interest rates would continue to remain low, while the prices will increase slowly. According to the future trend, the housing market will experience significant improvement as well.
These predictions have been made, considering the market forces of the previous years. Owing to geopolitical events, the market had experienced a significant setback. Volatility has been noticed in the marketplace, driving the interest rates to become low.
By evaluating the current market trends, the prediction has been made that houses' prices will rise at a slower pace. One of the major factors that contributed to the increased cost in the housing markets is the lack of housing inventories for potential buyers.
However, there has been a noticeable shift in these trends due to the COVID-19 pandemic all across the globe.
There is no doubt that the sudden outbreak of the Coronavirus has had a major impact on the real estate market throughout the world. The shutdown declared by the federal government put non-essential businesses transactions at hold.
Not to mention the social distancing rules that have taken a toll on the real estate transactions. In fact, there is a lot of uncertainty in the economic situation, keeping buyers from investing in real estate.
With the shift in the economy, there is no doubt that the number of newly listed houses are declining. Experts are predicting that the housing market would face a massive cut in interest rates in the near future.
Keep an eye on what is happening in the national housing market. Most importantly, looking for prices of houses in your locality will do more good, and help you to have an insight into how the prices are fluctuating. This is how you can make sure you are buying the right home without having to worry about the interest rates.
With the sudden and unfortunate fall in housing prices, it is worth stating that the situation will not improve even at the end of 2020. It is expected that the prices will start recovering in 2021, depending on how the current year ends.
This suggests you remain up-to-date about the previous and current market trends to see what happens in the next year. It is also important for you to be mindful of how COVID-19 is going to affect the predictions for 2020 and the upcoming year.