March 2020 marked the beginning of one of the most tumultuous years in the history of economics, business, and more specifically the housing market. After the market came to a screeching halt, there was great speculation that the housing market would go back into a scenario similar to the one that happened in 2008. However, many experts also speculated that there wouldn’t be such a problem because this freeze was from the demand side rather than the supply side, as in 2008.
Covid-19 almost halted the Real Estate market along with other major supply chains on a global scale. But as time has progressed there have been several different growth factors that contributed to a speedy recovery of the Real Estate Market. And thanks to this speedy recovery, the Real Estate Market is now booming.
1. Higher supply and lower demand in rentals
One reason that the real estate market is now booming is because of the lack of demand that came about through covid-19. With individuals losing jobs, facing inflation, and struggling to make ends meet there were several thousand people that began pulling out of their expensive rented mansions and into small and affordable apartment buildings. And those that were in the apartment buildings also had to face a certain downgrade.
Once renters and homeowners saw that demand for their housing services was declining rapidly, there was a race to see who could offer the best prices in order to boost their chances of making sales and earning money.
2. Home buying prices skyrocketed
Due to covid-19 making it harder for people to afford the same homes, many homeowners began selling their homes at extremely lowered prices and getting rid of unnecessary assets. But at the same time this presented an opportunity for real estate investors to find great homes at more than great prices. But eventually, those home owners were able to increase their prices rapidly once the investors began bidding wars over the best properties. Now that many restrictions have been lifted, the market is on a stable footing and experts believe it will remain stable in the future.