The Coronavirus has altered a lot of the business trends, and the economy of the world has fallen flat. The US economy has recorded the highest jump in the rates of unemployment which has, in turn, led to low mortgage rates. This leaves us with nothing but the most significant uncertainty regarding the trends and mortgage values. This has caveated a lot of questions in everyone’s minds, regarding what’s next? Here are six real estate and mortgage trends that we can expect to see in the third quarter of 2020.
Trend 1: Holding up the house prices
The pandemic has not affected the US house prices much, and it still remains strong. When compared to the figures of May 2019, the sale of houses increased by 2.3% according to the National Association of Realtors. Although it was predicted to increase the inventory and the selling of houses will fall short to a bare minimum, the exact opposite has taken place. Although the increase in house prices is uncertain, there are predictions of a 6.65 fall in the price from May 2020 to May 2021.
Trend 2: migration to suburbs
When we consider the entire country, the virus has affected the densely populated areas of the US, which includes Manhattan. Many real estate agents and the brokers have claimed that the increase in the percentage of people moving to the suburb areas from the densely populated areas has seen a sharp rise in the previous months.
Trend 3: Lower records for staying
when compared t the beginning of the year, the mortgage rates have fallen short in the month of June and reduced even more in July. Many of the economists, even predict that the following months will show a further decline in the mortgage rates, leading t the highest minimum.
Trend 4: home Shopping
The virtual tour of properties from home has increased the sales of the real estate many realtors claim that they have witnessed the customers spending thousands of dollar, even without stepping into the house they’re buying. The technological aid like 3D walkthrough and tours have eased the broker’s work to a greater extent.
This action is mainly taken to avoid unnecessary crowing in public l places and to prevent themselves from being quarantined for two weeks after the travel.
Trend 5: Paperless mortgage process
All of us know the importance of paperwork when we’re buying anything under the sun, especially property and houses. The norms of social distancing and six feet distance, the paperwork have gained importance leading to signatures taken remotely. People are astonished by how quickly the entire world has technological shifted to a digital world.
Trend 6: Millenials
Millennials entered the job market at the time of recessions, that has basically depressed their earnings. This year a peak of the Millenials hit 30, resulting in ownership demands of properties and hoses. However, the current situation has turned the tables for most of them and threw water on heir plans.