2020 has been a hard year for forecasters. There is no area of the world left untouched by the events that have occurred, whether directly or indirectly, and the real estate industry is no exception. During the second quarter of the year is when it started to become obvious that we are experiencing a seller’s market. It also appears that it will remain that way for the foreseeable future.
The reason behind the mass exodus away from urban areas stems from an influx of people who are reaching out to suburban and rural areas in order to feel safe and/or live a less stressful lifestyle. People who used to have a structured wish list when it came to choosing real estate have now reevaluated their priorities. Not only are people making long-term plans to work remotely, but they also need bigger homes in which to practice social distancing. Millennial make up a large portion of today’s homebuyer, and they tend to dictate market trends.
However, even though the demand has increased, the supply hasn’t. During the first quarter of the year, people pulled their properties off the market because they didn’t want them to age. Those properties have not been relisted to meet the ever-increasing demand. This results in a very competitive market for buyers and a free-for-all when it comes to the asking price for most properties.
That being said, there are areas within the U.S. that have excellent housing markets. Realtor.com released its annual list of the hottest ZIP codes in America, and their criteria include the speed at which homes are grabbed off the market, as well as a more economical cost per square foot for those searching for roomy, suburban homes. Other factors that make homes desirable are good school districts and access to public transport for commuters.
Unsurprisingly, the most popular environs are the ones that surround America’s most bustling cities. People still want access to places like New York and Boston, but they can no longer necessarily envision raising families there. For this reason, the east coast of America makes up half of the ten hottest zip codes. Another factor is the lack of interest in the midwest and southern regions because of the higher cases of Covid-19. The increase in cases is very unattractive to prospective buyers.