The pandemic led many to think that the economy will suffer tremendously as a result of people losing their jobs and not being able to invest in their communities. However, real estate is here to save the day! The housing market has actually played a key factor in the quick turnaround of the economy, and buying a home has also proven to be a stable investment during these uncertain times.
Here’s How Real Estate Is Turning the Economy Around
As of late 2020, there is an extremely high demand for houses. Statistics show that there has been a boost in economic growth after an increase in homes being sold at above-average prices. The limited amount of homes available for purchase to meet the demand of buyers has also driven up the average listing price. Because home prices now appreciate at an above-average rate, sellers can even make more money off of their sales. This, in turn, stimulates the economy.
Low rates come with a high reward
Many buyers in the housing market are looking to take advantage of historically low mortgage rates. Homeowners are also able to refinance for cheaper rates, which can save them thousands of dollars per year. These low rates provide support to the economy at a crucial time, especially as the housing market continues to get more competitive.
The market has always been a factor
The housing market has always played a role in the determination of the economy’s success. Last year alone, the industry provided around $3.7 billion dollars of national economic impact. Homes sold in the state of Pennsylvania contributed $65K each to the economy in 2019. This shows that now is a great time to invest in the Pittsburgh housing market!
Statistics don’t lie
Recently, the Bureau of Economic Analysis announced that the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the third quarter. In comparison, it decreased by 31.4% in the second quarter as America continued to battle COVID-19 and the subsequent financial crisis.
These stats can be credited to more people buying and selling their homes as the year went on. This also clearly demonstrates the impact that a successful housing market can have on growing a strong economy. Many experts predict that the increase in housing growth will continue into the new year.
The good news: homeownership is skyrocketing
Throughout all the turmoil that 2020 and the coronavirus pandemic have brought into Americans’ lives, the dream of owning a home is not unachievable. Additionally, the projected downfall of the economy was not as drastic as some had feared it would be, which has led many young buyers to pursue their dreams of homeownership. This, in turn, has stimulated the economy and allowed the housing market to have a significant and positive impact on the nation as a whole.
Interested in Becoming a Homeowner?
Has reading these stats on the economy driven you to start searching for a new home? We would love to help assist you throughout the buying or selling process! Give the Jim Dolanch team a call today and let us help you navigate the process from start to finish!