How the Housing Market Has Changed Since 2020
December 8, 2023
Are you in the market for a new home? Looking for a little more real estate, perhaps getting away from the hustle and bustle of the city? If so, you’re not alone.
When folks began doing more remote work and schooling in the spring of 2020, chances are that few could have predicted how much would change in the years ahead. However, according to a new report from Bright MLS and George Mason University, the pandemic has altered affordability, supply, and home preferences for both the near- and long-term future.
The research was conducted to assess the long-term impact to the housing market from the government’s COVID-19 response, particularly in the Mid-Atlantic region.
In some regards, new home ownership opportunities opened up with federal stimulus payments and the chance to relocate and do more work from home. At the same time, the policies enacted had a tremendous impact on affordability and housing inventory, as the demand far outpaced the available supply of homes for sale.
Low interest rates initially fueled demand, causing housing prices to soar upwards of 40%, between 2020 and 2022. That has resulted in an all-time low affordability — with an annual income of $120,000 needed to buy a typical home in the Mid-Atlantic.
At the same time, the housing industry began seeing a shift in what buyers wanted — looking for more living space and the chance to move away from a true urban center. “With work from home still very common for some businesses and industries, housing preferences are very different today than they were for millions of Americans prior to the pandemic,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist.
“With commuting no longer a factor, many may be comfortable exchanging proximity to an urban area for affordability and more space.”
If you’re looking to move soon, these findings could play a role in the search for your next home, from finding what you need to determining a reasonable mortgage rate. Keeping yourself informed about the ever-shifting market is key to navigating this complex scene. For more on these findings, check out the full report.
At Beltmann, we’re always available to help with any upcoming moving and storage needs, whether that’s a local move, across town, or across the country for a complete interstate relocation. Contact us for a free contactless quote, and we’d be happy to help walk you through the process.
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