The Economic Impact on Buying a Home

The Economic Impact on Buying a Home

This video shows how purchasing a home positively impacts the economy. It actually doubles when it is a brand new home (construction). This is why the Real Estate Market is a leading indicator in determining the state of the US Economy.

Per our local Multiple Listing Service, REIN, March had proven to be strong in home purchases. REIN published on 4/10/20 “Residential sales were strong in March 2020, with 3,102 homes going under contract during the month (up 21.55% year-over-year), and settled sales increasing 14.75% compared to March 2019. This is the 18th consecutive month that pending sales have increased year-over-year, and 11 months in a row that settled sales have risen. The median sales price for the region rose 8.70% year-over-year to $249,900.”

March 2020 Real Estate Activity Hampton Roads

Of course, pending sales and closings first start at the minimum 30 days prior in February before “stay-in-place” orders were enforced. REIN has not released as of yet Pending Sales and Closures for April. I imagine those statistics may be lower just because of the added precautions.

But it may not be. The stock market remains strong even with the increasing amount of unemployment claims. A large portion of those claims are from employees who have been furloughed or laid off with the strong hopes they will be hired back. However, the longer the crisis lasts, the more businesses will either not re-open, re-open with a much smaller work staff, or declare bankruptcy.

With Virginia moving into Phase 1 of the Re-Opening this week, restrictions will begin to ease. But keep in mind, the Real Estate industry will still comply to COVID-19 safety guidelines.

  1. Buyers can view homes via tour or live-stream videos of homes.
  2. Buyers/Sellers can discuss various matters via teleconferencing, Zoom, Duo, Facetime, SKYPE, etc…
  3. Home Inspectors are doing their jobs with video recording of their inspections.
  4. Title Company Abstractors are still able to research history of properties at city/town/ municipal court houses, as well as recording of new deeds after closings.
  5. All documents involved with Real Estate transactions can be signed digitally on Computers, Tablets and smart phones.

As a reminder, Mortgage rates are still at historic lows. It is still a wonderful time to buy even with the current Coronavirus crisis. If you are ready to purchase a home or list one, please feel free to contact me anytime at 757-876-7443 or chris@willowbeachre.com.

Photo by Pixabay on Pexels.com

Leave a Reply

Your email address will not be published. Required fields are marked *