How the pandemic reshaped the housing market

How the pandemic reshaped the housing market

How the pandemic reshaped the housing market
Americans who are buying or selling a home in 2021 can tell that the housing market this year is unlike any other. Record high home prices, a limited selection of properties to pick from and fierce competition. This is radically different from years past when sellers needed to wait weeks or even months to get the right offer on their property and buyers who could have bargained a lower price on a home. All these changes are largely attributable to the pandemic.

Lockdowns led to people rethinking their living arrangements. Working and learning from home has driven a desire for bigger homes with more space. Rather than cramming desks in to closets or using dining tables as classrooms, home buyers are seeking larger homes. And with mortgage rates being so low, buyers have more leverage with their lender to afford these bigger houses.

Another major shift over the last year has been in the areas people are choosing to move to. No longer being tethered to the office and concerned about a commute has allowed home buyers to seek out less expensive, larger homes in more rural areas away from big cities.

These trends, experts say, are likely to stick around for many years to come. Those looking to purchase a new home will find conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.