Travis White Newport Beach realtor recently discussed why existing home sales skyrocketed during the month of July, 2020.
The year 2020 has brought about unprecedented changes in the real estate market. Mortgage rates are at record lows, new home sales may reach record highs, and existing-home sales have been soaring at a faster pace than ever before. Travis White Newport Beach realtor recently discussed the latter — the record rate at which previously-owned homes sold in July, 2020.
According to Travis White Newport Beach realtor, previously-owned home sales skyrocketed 24.7 percent between the months of June and July. Travis White Newport Beach realtor explained that the housing market has completed the recovery phase and is now in a full-blown boom. Home sales are now higher than before the pandemic.
“We’re seeing a major trend in buyers looking for a little more space or little more luxury, now that they’re spending so much time at home,” Travis White Newport Beach realtor said. “We expect people to continue working from home and generally spending more time at home due to the pandemic well into next year as well.”
Record low mortgage rates have encouraged buyers who were formerly on the fence to take advantage and purchase before rates begin to rise. Travis White Newport Beach realtor added that millennials are now aging into their home-buying years, adding an entire generation of buyers to the market.
Travis White Newport Beach realtor explained that the boom in home sales may be foreshadowing for a positive outcome regarding the overall economy as well. Home values are rising at rapid rates, with the median home value rising 8.5 percent since last year. For the first time in history, the median home value is now more than $300,000, reaching $304,100 in July.
“The start of the coronavirus pandemic looked grim for the real estate industry,” Travis White Newport Beach realtor said. “People were in a state of shock, and home sales initially plummeted. We’ve been so fortunate to have this massive turnaround.”
Travis White Newport Beach realtor explained that while he hopes home sales will continue soaring, many economists believe there will be a cap to the growth. Home inventory is dwindling, and many potential sellers have decided to hold off on listing their properties. The lower demand will likely increase prices, and some buyers will be priced out of the market.
“We’re going to keep selling at this rate for as long as we can,” Travis White Newport Beach realtor said. “And while we know home sales will eventually reach a plateau, we expect 2021 to be another year in which homeowners look for more space or a few more luxuries.”
Travis White Newport Beach realtor explained that it could be years before society returns to spending as much time out of the home as pre-pandemic days. Until then, we’ll see plenty of homeowners looking to upgrade.