Buying Houses in the USA – Has Anything Changed Since Covid?

There is no question that the housing market has changed dramatically from the moment that the pandemic was announced until now.

Despite lockdowns, the loss of employment, and financial hardship, the demand for houses rose so much that prices surged.

The supply of houses for sale dropped to historically low levels, leading to buyers bidding ever-higher amounts. Home prices in the US thus increased by 30% between 2020 and now.

While this all sounds good news for sellers, it would not be good in the long term for prospective first-time buyers if this path continued.

However, things are changing in 2022 in the post-Covid housing market.

What Is Transpiring in the Housing Market in 2022?

The demand for houses grew during Covid due to the lack of available housing for sale. This led to bidding wars and a surge in the price of homes.

Now though, demand appears to be dropping at what is traditionally one of the best times to sell a house.

Less Demand and More Housing

Reports show that existing house sales dropped 5.4% in June of 2022. This is a new low over the previous 24 months, and house sales dropped in the fifth consecutive month.

An increase in the total housing inventory of 9.6% between May and July has helped to contribute to slower sales, although there is also simply less demand.

More Foreclosures

The COVID-19 Emergency Eviction and Foreclosure Act of 2020 was put into place to help homeowners who had found themselves in times of financial hardship.

This led to a huge decline in the number of foreclosures during Covid compared to previous years.

However, the moratorium has ended, and foreclosures are happening on a larger scale once more. In 2021, 92,436 US properties had the foreclosure process begin on them. In just the first half of 2020, the process has started on 117,383 properties already.

This will lead to more houses available for sale and the possibility of house prices dropping.

Mortgage Rates Are Rising

In the year’s first half, fixed mortgage rates rose 2 percentage points. Experts believe interest rates will continue to rise for the rest of 2022 due to inflation and other economic crises.

This makes it harder for buyers to get on to the property ladder and can cause financial hardship for those paying off mortgages currently.

Can You Still Make a Quick Sale in the Post-covid Housing Market?

The way that 2022 is panning out could mean that it is a harder time to sell a home, especially quickly.

The housing supply during Covid simply couldn’t meet the demand, but that isn’t the case currently.

A home investor may be the better option for someone needing to make a quick sale now. In January of this year, 6,1490,000 existing homes were sold. In June, this figure dropped to 5,120,000.

Home investors such as CashHouseBuyersUSA.com are still purchasing property, though, and if a quick sale is needed, then this may be the best option.

So, What Changed in the Housing Market During COVID?

Only 8% of Americans decided to move home during the 12 months following March 2020. This was the lowest figure on record ever.

Along with the moratorium on foreclosures, the available inventory of houses for sale plummeted.

People still wanted to buy homes, though, and thus the demand outstripped the supply. This led to the average US home cost rising from $258,000 in 2019 to $348,000 in 2022.

What Areas in the U.S. Are Still Selling Well?

Selling a home fast can require taking a number of steps. You may need to prepare your home for a quick sale or stage it. Renovations may need to be done, and some repairs carried out.

Some areas of the states are still very hot, though with housing in demand, meaning sellers can be a little more relaxed.

Some of the biggest downturns in house sales have been in California. San Jose, Sacramento, and Oakland have slowed house sales. However, things are very different in other states.

Two of the hottest places in the housing market now are Tampa and Jacksonville in Florida. These are still in heavy demand, forcing house prices to go even higher.

Summary

Covid affected the housing market most unexpectedly by pushing up house prices during a recession. However, sales, in general, are now dropping, making it tougher for sellers all around.

You could avoid the worst aspects of moving home by selling to a cash buyer and speeding up the process, but with prices as they are now, you may be better off waiting.

Despite the rise in inventory and the drop in sales, the median house price keeps rising, and there are no signs that this will change.