Over 1 Million Home Sales in 2020
Sep 9, 2020
Of all the odd and depressing things 2020 will be remembered for, who would of thought that record-setting home sales would be a sliver lining? As of August 2020, new home sales in the US breached the 1 million mark, up 43% over last year and on the fastest pace since 2006.
FlexJobs conducted a recent survey of working professionals since the Covid-19 outbreak and found that 67% no longer had a 2-3 hour daily commute and nearly 1/3 felt that remote work prompted them to consider moving. 2020 seems to be the year to move.
“The house is becoming more than just a home base after a long day of work and play. It’s now the place where people work and play with a lot more free time on their hands. Many are looking for a home office or more space for the family, with less concern for the commute,” says Mike Anderson, CMO of Intercap Lending.
According to Realtor Magazine, home sales would be even higher if there was more inventory. Housing inventory of existing homes is down 18.6% compared to a year ago. Home Builders of America said their number one challenge to meet new residential construction demand is whether material and labor will be available. Those who have lost jobs in the hospitality sector may want to consider construction.
Anderson also added, “The beauty of the housing market is that each stage of homeownership provides opportunity to those ahead or behind in the buying cycle. First-time buyers need mover-uppers to sell their starter homes. Down-sizers are buying in new 55+ developments and looking for mover-uppers to buy their bigger homes. Movement from cities to the suburbs is part of the natural cycle from young professionals and investors to suburban living and retirement. Home builders fill in the gaps where existing homes can’t meet demand and the cycle continues.”
To keep this homebuyer life cycle going, homeowners that want to move need to believe that finding a new home is just as beneficial as selling their existing home, even in a seller’s market like this. If demand follows the natural buying cycle, it’s always a good time to buy and sell, with the overall cost and benefit working out between the two transactions.