The global pandemic has led to many financial difficulties for some people, but according to stats, if you were selling a home in July of 2020, chances are you did pretty well. In yet another update on the pandemic real estate market, we're reporting that according to sources cited below, the real estate market boomed by a margin almost 25% in comparison to June of 2020. The median home price surged 8.5%, and the supply of homes for sale went down by a margin of 21.1%.
The July 2020 Homes Report
Going back to 1968, the surge of home sales from June to July was the largest monthly gain ever seen, and additionally it was the fastest pace of sales since December of 2006 (based on closed sales.)
The catalysts for this massive trend upwards include the supply falling, prices increasing, and the historically low mortgage rates we're seeing. The shortage led to a massive edge for sellers, helping the median sales price rise by a margin of 8.5% to just over $304,000. When you adjust this number for inflation, it's higher than the record real estate numbers of 2006, and take that with a grain of salt as just about anyone with a credit score could get a loan with little or even no money down. Today's lending market has much higher standards, checks, and balances.
Lawrence Yun, chief economist for the Realtors, had this comment remarked on CNBC:
I think there is a big societal change concerning housing decisions today. The upper income bracket has been more stable in terms of jobs, and they are taking advantage of record low mortgage rates
Again, the historically low interest rates, coming in at an average at about 3%, is one of the big reasons the wealthy are taking chances on real estate they may not have purchased with higher rates.
In good news for the home builders, sales of new homes rose by 14% from May to June. This information comes from the U.S. Census.
There has never been a better time to get into the real estate flipping market. As we cited in past blog updates (see below), despite these encouraging economic numbers, there are still many people facing eviction, leaving a lot of opportunities for real estate investors come in and save the day.
Learn how we teach South Florida real estate investors how to find an edge in any market, but attending one of our in person or virtual classes. Simply check out our events calendar here: https://breia.com/upcoming-events/
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