If the last two years have taught us anything, it’s the importance of home. For many of us, home is a place to feel safe and should we ever have to bunker down there, we should have the space and amenities to do so comfortably. Lakeside Title knows we have all been busy since the onset of the pandemic – evolving and adapting for our customers – but it’s almost hard to believe it has been more than two years since the world shut down.
It was on March 11, 2020 that the World Health Organization officially declared coronavirus a pandemic. Since that day, the housing market has seen record-setting changes directly resulting from this new importance placed on the home. Keep reading to find out how the housing market has changed in the two years since the pandemic. It’s safe to say things have permanently changed – virtual home tours are here to stay, as is Remote Online Notarization for closings. The latter of which we are proud to offer to Lakeside Title customers that need them.
There are fewer houses on the market today than ever before, down 49.9% from previous years, according to a study by Redfin. With so few listings and so many homebuyers eager to move, prices skyrocketed and bidding wars became the norm. Homes are selling twice as fast and are 34% more expensive. It has not been unusual to see homes selling for $100,000 or more over asking price in these last two years. Mortgage rates hit an all-time low of 2.65% in 2021. Now they’re back to pre-pandemic levels but have dropped slightly, due to Russia’s invasion of Ukraine.
Decrease in demand?
No! The shortage of homes on the market has not correlated to a lack of demand. More homebuyers than ever, nearly one-third, have looked to relocate. Those that don’t want to relocate permanently, look for a temporary fix. Demand for second homes is up 87% from pre-pandemic levels. No matter the reason, homebuyers have been ready to engage in bidding wars and are twice as likely to pay above asking price, pay premiums, waive fees, etc. to beat out the competition and secure their home.
A shift in priorities
Since the start of the pandemic people have spent more time at home. Whether it be for work, school, or play, the biggest thing people are looking for…more space! People have moved away from crowded cities to more affordable, metro areas and are less willing to negotiate on space and amenities. Read this article from Forbes to find out more.
The changes we’ve seen in the housing market over the last two years have kept us all busy. The Lakeside Title team appreciate all of our customers and partners who have worked with us and navigated these changes together. We couldn’t be more appreciative and can’t to see what this spring season has in store for us all.