The outbreak of the COVID-19 pandemic left many people in financial distress. The real estate market took off, which made investors and homeowners the beneficiaries. According to CoreLogic, the value of mortgages increased by about $1 trillion in the United States during the September 2019 to September 2021 period.
According to the S&P Case-Shiller National Home Price Index, housing prices increased by 9.5% in November 2020. The average home was valued at $245,000 at the end of 2020. By June 2021, the average home was worth $295,300.
The pandemic also affected the demand and supply of housing. As the cost of borrowing money decreased, people started looking for houses. An improving economy and the rise of millennials, who started working from home, additionally increased the demand.
Despite the various factors that affected the housing market, the Federal Reserve continued to support it by purchasing mortgage-backed securities. As more people started looking for houses, the number of available properties decreased. However, people who would have previously listed their homes took them off the market.
Cities such as Phoenix, Austin, and Raleigh-Durham have experienced market booms due to the increasing number of people moving to these areas from places such as New York City, San Francisco, and Los Angeles. These areas have good business climates and an educated workforce.
The Research Triangle area in North Carolina is a great place to invest in rental real estate due to the high-tech jobs that are being created there. While the national average for renters is around one-third, the rate in Raleigh and Durham is 52% and 43%, respectively, due to the large student population and the young demographic moving into these areas.
Home prices in these areas have increased significantly over the past year. In Raleigh and Durham, the median home prices have increased from $340,303 and $304,217, respectively.
The combination of factors that have contributed to the rise of the housing market in Austin include the high demand, low inventory, and rising prices. The city has been offering tax breaks to companies that are looking to relocate to Austin. Some of these companies include Apple, Tesla, and Samsung. In 2021, the number of people moving to Austin has increased 45% compared to the previous year.
Las Vegas experienced a period of volatility during the Great Recession. However, its recovery has been rapid due to various factors, such as its low cost of living and a diversified business environment. It’s also an ideal location for people who can work from home.
One of the main factors that has contributed to the rise of the housing market in Dallas is its diverse economy. It has a job for everyone, and its homeownership rate is one of the lowest in the country. Due to the high demand for rental units, the supply of houses has increased significantly.
The Charlotte region has experienced significant job growth in the tech and financial industries, and it has 25 universities and colleges. Its low property taxes make it an ideal location for people who are looking to buy a home.
Between 2018 and 2019, the number of jobs in Charlotte has increased by 2.3%. Its job growth is expected to continue to be higher than the national average, and it will reach 45.2% by 2021.