How COVID-19 Has Impacted Real Estate Trends in 2020

Due to COVID-19, developers like Roger O’Steen Jacksonville PARC Group have seen big changes in real estate trends since the beginning of 2020. 

More Homeowners in Danger of Foreclosure

pandemic world

Since so many people lost income due to reductions in hours and layoffs, the number of people who faced losing their houses this year increased dramatically. The CARES act helped to stem this somewhat because it implemented assistance to homeowners with mortgage forbearance and to renters by temporarily stopping evictions. The eviction moratorium has run out. Therefore, many people may lose their housing, and property owners may see a loss in rental income. 

Home Sales Have Decreased

While the average price of a home has continued to rise, home sales have sharply decreased.  Sellers put off listing their homes or took down their listings because of the danger of letting people into their homes during the pandemic. Developers of higher-end properties like Roger OSteen Jacksonville have not been affected as much as the average seller. Due to decreased income and continued business shutdowns, fewer people are able to afford a home. Potential buyers may be delaying their purchase in hopes that prices will come down.  If more businesses reopen soon, companies may be able to build more affordable housing but the timeline for that is unknown. 

Falling Mortgage Rates

Pre-COVID predictions held that mortgage rates would not change much in 2020. However, starting in February, mortgage rates began to go down. The pandemic caused a tumultuous market and the average mortgage rate hit unsurpassed lows several times throughout the summer. While drops in rates may not plummet again in the last quarter of the year, they will probably continue to steadily decrease. 

More Homeowners Refinanced This Year

When mortgage interest rates took a nosedive in March, more and more people refinanced their loans at the lower rates. This resulted in some banks curtailing their cuts in interest rates at least slightly. This trend will most likely flatten out from this point forward because the rates are not predicted to take another large dip. 

This entry was posted in Finance.

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