Why Is the Market Thriving During a Pandemic?
With the country dealing with the deadly COVID-19 pandemic, why is the housing market thriving? Even with the deadliest pandemic to hit the country in more than a century, the housing market has thrived due to the lowest mortgage rates ever recorded combined with a shift in how people are using their homes.
The number one reason people sought to purchase homes was due to the low interest rates, but as people are working from home more, they seek bigger homes and care less about commuting times. They see their homes not only as a place to live but an office and, for those with children, a part-time school. People are also seeking homes with pools and home gyms since they're spending so much time at home.
As a result, the NAR announced that existing-home sales jumped nearly 27% annually in October to a seasonally adjusted annual pace of 6.85 million units. This was the highest sales pace in 16 years.