The Coronavirus pandemic has touched every aspect of our lives, including the real estate market. Home sales slowed to a crawl in the spring as mitigation measures were enforced, but they are now gaining momentum. Real estate expert Bryan Nazor takes a look at the whys and wheres of the 2020 housing boom.
The Spring Slowdown
Bryan Nazor states that the early months of 2020 were strong. At the end of March, homes were reaching pending status five days faster than they were in 2019. As quarantines were enforced, a slowdown occurred. By Mid-May, homes were on the market for an average of 31 days, a dramatic decline from the 25 days that week in 2019. By this time, the full scope of the pandemic was realized, and there were economic concerns as many businesses had to shut down.
Supply and Demand
According to Bryan Nazor there is a limited supply to meet the current demand. Buyers fear that prices will rise, and there will be a limited number of available houses. In May, home inventory was down by nearly 10% from the numbers in 2019. Still, Bryan Nazor says that the market may level out soon. If buying slows down due to a sluggish pandemic economy and uncertainty, the supply may be more than the demand in the coming months.
Changes In Work and Location
Bryan Nazor notes that many people are now able to work from home. Along with fears of being exposed to COVID-19 in urban areas, this has led to a boom in suburban housing purchases. If you don’t have to face a daily commute, you can theoretically live wherever you wish. More and more buyers are forgoing city life for the suburbs. Bryan Nazor expects this trend to continue, and new construction in suburban areas to increase to meet the growing demand.
New York City has taken a big hit. Homes now spend an average of 70 days on the market, which is a drastic increase from the 45 days at this time in 2019. While the numbers are less stark, many metropolitan areas are also experiencing a slowdown in home purchases. 29 of the 35 largest U.S. cities have longer days to pending than they did at this time last year.
Bryan Nazor Expertise
Bryan Nazor graduated with distinction from New York University Law School. He has extensive experience in real estate, corporate financing, and investing. He is the CEO of Main Street Title, a real estate law firm dedicated to aiding home buyers and providing title insurance. He manages the operations of the finance and title divisions, as well as residential and commercial closings.