Remember 2020? It was a year we’d all like to forget, right? Well, here’s one positive: the pandemic-induced recession did more than stale our Peleton workouts. It also allowed us to watch the housing market do a crazy dance. And the good news is this: home prices are rebounding! That’s right, folks. The market is bouncing back in a way that will make you want to twerk… or do your version of it, which is just fine too.
Now, let’s dig into what’s going on. Home prices nationwide have been steadily increasing for months, and economists have begun to use the “rebound” term. According to recent data released by the National Association of Realtors, the national median home price rose to $334,500 in January, marking a 14.1% increase from the same period a year ago. These numbers speak to the strength of the market, showing that demand for homes is still high despite Covid-19.
What’s driving the surge in prices? Simple supply and demand, guys. Houses are a finite resource, and as more people enter the market with limited inventory, prices go up. Plus, low-interest rates and pent-up demand from the pandemic are driving buyers to jump into the market, which is creating more competition and driving prices higher. So, if you’re a homeowner looking to sell, now is the perfect time to put your house on the market… just be prepared for some eager buyers.
But, this rebound isn’t just happening in the suburbs. Urban areas are seeing some positive changes as well. Many city-dwellers fled major metropolitan areas in search of more space and affordability, but now big cities such as New York City and San Francisco are starting to see a resurgence in homebuyers’ interest. According to a Zillow report, San Francisco has seen a 14.9% increase in home values over the last year! This is great news for city lovers who can now re-enter the market and find a variety of properties to choose from.
Looking past the pandemic and into the future, the housing market will continue to be closely watched by investors as well as individuals. While there may be some short-term fluctuations, the recent increase in prices suggests that the overall housing market will continue to rebound positively. One of the best things about owning a home is the potential to build wealth over time through property appreciation. With the recent rebound, homeowners/investors could potentially see significant returns in the future, especially if they’re able to enter the market soon.
Okay, it’s official: the housing market is on the rebound. While recovering from 2020, this positive news is a breath of fresh air. Homeowners can rejoice in the potential value of their property, while buyers can feel confident that they’re buying into a stable market. The future is looking bright for the housing industry and I, for one, am excited to continue watching these trends. Hello, equity!
