Three trends making real estate market hot

Three trends making real estate market hot
As expected from the pandemic situation, the certainty about economy still isn’t there. With this uncertainty, what really is surprising is the eagerness with which American buyers are looking for new homes on sale. A sense of FOMO or Fear of Missing Out is prevalent among the buyers and sellers due to record low mortgage rates, low inventory and bidding wars. This has made the real estate market more competitive and hot. As a result of this, the real estate market has overtaken the pre-pandemic levels instead of merely recovering.

We know that the pandemic has caused an economic recession and a hot real estate market would normally seem unlikely. But a recession fueled by pandemic seems to have no effect on market activity. This can be attributed to the two factors, stock market gains and soaring home equity which have actually cushioned the hit which recession could have delivered to the market otherwise. On making comparisons with last year’s figures, there is a rise in mortgage applications by 27 percent, pending sales of homes by 20 percent and buyer traffic by 32 percent this year.

On observing the three trends mentioned above, we realise why real estate market is hyperactive. This also makes us infer that this winter is the best ever winter for real estate sector. We must not forget the part record low mortgage also have played in encouraging consumers to actively participate in the current real estate market.