The housing and real estate market was competitive before the COVID-19 pandemic hit. It was common practice for many Americans to buy, renovate, and sell houses in Florida to generate income. However, everything changed when the pandemic paralyzed the world’s economies.
With the introduction of work-from-home setups and distance learning, some Americans have realized that their current homes were not ideal for the demands of a COVID-19 stricken world.
So why is this a big deal?
Well, for one, homes for sale were already in a shortage before the pandemic. As some businesses are temporarily or permanently closed, unemployment is a common language that everyone can understand. Hence, people postponed their plans to sell their homes.
As the supply of homes for sale decreases, economics responds with higher prices. The turnover of houses for sale is staggering. Houses quickly sell, but supply replenishes at a slower rate. There is dissonance in the real estate market.
Homebuyers are quick to buy, while home sellers are hesitant to sell. Demand is outweighing supply, all thanks to the pandemic. Realtor.com recently reported that housing inventory is 42.6 lower than last year’s data.
Is There a Shortage of Homes for Sale?
Well, you can say that there’s a shortage. However, it’s more of an artificial shortage. If you analyze the situation while holding other things constant, houses for sale are adequate or above the real estate market’s demand. By adding COVID-19 in the equation, the No. 1 factor that reacts to this addition is the price.
Since houses are not as readily available, many buyers are grabbing the opportunity as soon as they come on the market. In other words, homes are sold too quickly, which results in an artificial shortage. Homebuyers are trying their best to succeed in a situation where sellers receive multiple offers.
Here’s a quick story so that you’ll understand this situation in a lighter sense.
When the COVID-19 virus erupted, people panicked. Americans stormed grocery stores to buy food, home necessities, and—ironically—toilet paper. Does that ring a bell? Before the lockdowns, seeing toilet paper in groceries and marts is a blessing. However, was there a shortage of toilet paper back then?
Apparently, there’s no shortage. Supermarkets and groceries just couldn’t replenish as fast as they sell. That’s why there was an artificial shortage. Demand was too high for market intermediaries (i.e., supermarkets) couldn’t maintain the needed inventory to serve everyone. And basically, the same thing happens in the housing market today.
Vaccines Are Coming
The U.S. government is currently on the path to ensuring that vaccinations are administered to the American people. Though there are priorities in the vaccine rollout, vaccines are coming to the healthier and less vulnerable population. With vaccines now available, the real estate market will be kinder to buyers and sellers alike.
Economists predict that vaccines can increase the confidence of the public in general. As people get immunity from the virus, the business sector will slowly expand and return to a new normal. In the real estate market, home sellers will relax and list their homes for sale. Predictions state that more houses will be listed for sale during the first two quarters of 2021. This is great news for homebuyers out there.
Get Expert Advice on Available Homes For Sale Now
As of this writing, the real estate market hasn’t changed much from the post-Covid-19 era. However, now that vaccines are available to the public, you need to be ready for the expected surge of new homes for sale in the real estate market. At the Nickley Group, we can help you make the best home-buying decision amid the ongoing pandemic.
You need a trusted real estate expert to help you navigate through the real estate market in the new normal. There may only be a few homes for sale right now, and we’re your best resource for finding them and landing yourself a good deal.
Let The Nickley Group find the best home for you in Orlando. Our real estate advisors know every corner of Central Florida, we’re sure that we can find the best home for you even if there’s an artificial shortage of houses. Contact us now at 407.906.2456 or visit us at 1013 E. Colonial Dr. Orlando, FL 32803 to get started.