Essentially every major market took a huge hit in 2020 due to the effects of the worldwide pandemic. It would be hard to find a market that wasn’t a victim of the year, but fortunately, a lot of these markets have started to stabilize and even rise.
One of the biggest markets that took the biggest hits last year was the housing market. The housing market depends on the financial stability of the general public. After all, if people don’t have money then they can’t purchase a home.
Though the market took a hit, millions of people still tried to sell their homes. This only made the situation worse as the market became extremely overcrowded, which made people sell their houses way below the market value, which brought the overall success of the market down.
In recent months the world has started to return to normality. This means that most of the major markets out there have started to get back to normal. It also means that the general financial stability of the general public is beginning to return to normal. Because of this and because most of us have been forced to become well acquainted with the same four walls for a year, there are plenty of us out there that want to move and purchase a new home.
However, many people are hesitant about taking the time to purchase a new home due to the uncertainty that is now associated with the housing market, but are these worries needless, and is the housing market on the rise once more?
One of the main reasons that the housing market took such a hit last year was because of the bank’s unwillingness to offer loans out as easily. Now, most of us are not in the financial position where we can afford to blow a few hundred thousand on buying our dream home. Because of this, to make the move that we want to, a lot of us require a bank loan.
Last year was a year of economic uncertainty for everyone. Nobody knew if we would return to another recession or if things would start to balance out. Because of this, the banks became much more reluctant when it came to giving out mortgages. This meant that they only gave the mortgages to people that could give a large down payment on the loan, which many people couldn’t do at the time.
Now that the economy is starting to stabilize, the banks are loosening the reins on who they allow having loans. This means that more and more people are being able to get loans, which means that more and more people can now buy houses.
Is the market back to normal?
What is important to know is that just because the market is now on the rise, this does not mean that the market has returned to its usual state. As I previously stated, many people put their house on the market last year. This has not changed and many places still remain on the market. This means that if you wanted to sell your house right now, you would still have a lot of competition to overcome. So if you are someone that wants to put your house on the market, do not expect to have it sold instantly, especially as there are so many houses at such a low price that are available.
You could contact a real estate agent and find out what the average time to sell a house is in your area, and this could give you an idea of just how long you’ll have to wait.