The market is reviving after a sharp dip in sales contracts.
If you have been trying to sell your home to no avail, it might provide you with some comfort to know that you are not alone in the experience.
That’s correct. After seeing a noticeable trend of improvement in March 2020, the overall pending home sales in the U.S. recorded a sharp drop of 21.8 percent in April.
According to the National Association of Realtors (NAR), the move notes a 33.8 percent drop as compared to the same time last year. This also substantiates the biggest decline in the history of Pending Home Sales Index (PHS), which started recording signed housing contract activity in 2001.
As the country makes its way through the coronavirus (COVID-19) outbreak, this movement comes as part of a series of coronavirus effects on real estate. But all hope is not lost, as the demand seems to be bouncing back as quickly as it halted.
Stay at Home Orders Contributed to the Market Movement
According to experts from the NAR, COVID-19 has had a significant role to play in this current decline in signed contracts activity. But it doesn’t come as a shocking turn of events after seeing what the pandemic brought to the table nearly three months ago.
With factors such as physical distancing as well as seller and buyer hesitance to participate in the sales process, realtors all over the U.S. have been grappling with declined sales activity. This includes a drop in purchases in various parts of the country, along with inventory running short in select areas.
Given those factors, it was expected for pending home sales to fall during this unprecedented chapter of history. With that being said, the coronavirus effects on real estate seem to be relaxing in their intensity. This means that if you are looking to close on your desired listing, it wouldn’t be a far-fetched dream to achieve.
The Mitigation Measures by Realtors Seem to Be Working
While the world continued to grasp the reality of COVID-19, realtors all over the globe also vowed to do their best to mitigate the financial and operational risks posed by the pandemic. Fortunately, those vows seem to have come to fruition and provided the real estate market with the boost it needed through these difficult times.
With virtual tours, FaceTime meetings, and physical distancing through the later parts of the sales process, realtors have been successful in offering alternate methods for sellers and buyers to achieve their real estate goals.
This has resulted in a renewed enthusiasm in real estate activity around the country, with the overall market maintaining its prices and restoring stakeholders’ faith across the board.
Real Estate Demand is On the Rise
As sellers and buyers settle down with the new normal of functioning within a post-pandemic world, real estate demand has also benefited from a much needed improvement. According to recent reports, demand seems to be increasing in a gradual yet noticeable manner.
According to these statistics, the Pending Home Sales Index might just see the wave of revival that the real estate industry needs at the moment. This sliver of hope doesn’t end at realtors. It also extends to sellers and buyers who have been trying to find a perfect match to close on a listing while seeing coronavirus effects on real estate.
With more sellers putting their house on the market and more buyers willing to engage, this makes for a viable environment for everyone. If you are looking to close as either a seller or a buyer, this might be the time to move forward with your plans.