As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate?
Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic).
However, as the year unfolded, it became clear that there would be little negative impact on the housing market. As Mark Fleming, Chief Economist at First American, recently revealed:
“The only major industry to…
Fall is a great time of year to visit the Emerald Coast with mild weather and smaller crowds. We expect this year will be a little busier. The presence and influence of online schooling and remote working have changed normal school, work, and vacation cycles. Some schools are not having a spring break, and some are having them in January! As a result, it is expected that our normal real estate patterns will change as well.
The chart below compares the number of pended contracts in 2019 and 2020. As the chart below details, market activity in 2020 dropped during the height of the COVID-19 quarantine period but started to recover as soon as the economy started to reopen.
While there has been a gentle decline in activity since 8/1/2020 it…
A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.
The Institute for Luxury Home Marketing (ILHM) explains:
“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.
For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside),…