The COVID-19 pandemic has brought the economy down in most parts of the world, including the United States. Despite the crisis, however, home sales have increased.

The low supply of homes coupled with the rising demand has prompted the increase in prices of available housing properties, with values going up by around 25%.

Wanting to buy a home in these uncertain times is not surprising. And, although sales in populated cities are not doing so well, housing in rural areas and the suburbs are enjoying the opposite.

Maryland real estate agents, including The Ashley M. Miller Team, Your Home Hero, have seen a surge of home sales in the area, which have increased by 15%. Experts have been linking this to lifestyle changes caused by the pandemic. But, there are also other factors that lead to this surge in home sales and selling prices.

Factors Affecting Home Prices and Sales

  • All-time low interest rates: Mortgage rates have plummeted to under 3% due to the Federal Reserve lowering interest rates since early 2020.
  • Changes in lifestyle spending: Consumers today favor much of their spending against dining out, vacations, travels, concerts, or shows. Instead, they’re looking to spend more on their housing needs, especially with the increasing need to work from home.

While it’s not clear how long this change in spending will last, its effect may not totally cease after the pandemic years. This is because working from home is gradually becoming the new norm in most offices.

  • Low housing production: After a severe decline in housing production in 2008 brought about a widespread financial crisis, the construction of new houses is yet to recover. This deficit in houses is a natural cause of a home price increase.
  • A need to have a second home: Other wealthier families have also contributed to this surge in sales and prices. People planning to retire and homeowners who can afford to are in a rush to buy a second home without giving up their existing one.

Home sales and prices have also increased in Washington County, Maryland. The need for people to work and teach their kids from home has fueled this change in the real estate market.

The Hagerstown market, determined as one of the hottest in Maryland, attracts buyers even from Washington, DC.

Final Thoughts

The pandemic has surely brought about uncertain times. Yet, the real estate market has been thriving with the demand for homes swelling in the last year. Home sellers have a great opportunity to sell their properties today and enjoy the high selling prices.

If you’re looking for a Maryland real estate agent, The Ashley M. Miller Team is definitely Your Home Hero and they are here for you. Get in touch today with any inquiries and we’d be happy to help!