Real Estate is Leading the Economic Recovery
Although the Covid-19 pandemic has affected many industries this year, real estate has bounced back surprisingly well. After a minor pause in April and May, the real estate market surged upward through the summer and is anticipated to perform strongly in the Fall and winter.
Why the Real Estate Market is So Strong Right Now
Low interest rates. Current interest rates have been under 3% for over 12 weeks, making buying a home a very attractive option. These historically low rates are motivating people to advance their buying plans, while interest rates remain low, enabling them to purchase homes that might not be possible at higher interest rates, which has revitalized the market. With rates expected to remain low throughout the next year, home buyers should take advantage of these low interest rates.
Flight from density. As people continue working remotely, many individuals no longer need to live near their workplace, and many companies are now allowing, even encouraging, their workers to work remotely. This has led city-dwellers to move to the suburbs or exurbs to get away from crowds and be more socially distant. This has caused the market along the coast and around the suburbs to experience a rise in home sales and home prices.
Housing affordability. The current housing affordability index is 158.9, meaning the median household income has 58.9% more money than needed to afford a home. The index takes into account interest rates, median income and median home prices. With the current environment, consumers have strong buying power, allowing them to purchase homes they otherwise couldn’t afford at higher interest rates. Thus, if an individual is considering purchasing a home, now is a good time to advance the plans to do so.
In today’s competitive real estate market, Long & Foster’s integrated network of services make it easier to navigate the market. I am here for you and available to meet (virtually) and answer any questions you might have about buying or selling in today’s market.
At Main Line Homes, we have been helping Buyers and Sellers since 1994. We leverage the latest industry technologies to enable up-to-date tracking of market listings, empowering you to access newly listed homes as soon as they hit the market. We can help you find homes for sale across the entire Main Line, including lively Ardmore, vibrant Bryn Mawr, stately Gladwyne, heavenly Haverford, fabulous Villanova, wonderful Wynnewood, and all that the Philadelphia Main Line suburbs have to offer. Get in touch today, and let us help you with all of your real estate needs.