The housing market is playing a major role in today's economic recovery. Many have gone through major changes in their lives this year. From unemployment, to working from home, to homeschooling. These changes all contribute to people contemplating whether they should buy or sell today.
The high buyer demand coupled with the low housing inventory is resulting in home price appreciating in a fast pace. The buyer demand is mostly driven by the historically low mortgage interest rates in today's market.
According to Freddie Mac:
“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”
All of these factors are having a positive effect on the economy. According to NAR - National Association of Realtors, the real estate industry had $3.7 billion dollars of economic impact in 2019. The average newly built home contributed over $88,000 per build to local economy. As you can see from the map below, real estate has a significant impact to the country's economy:
The Bureau of Economic Analysis announced last week that the US Gross Domestic Product increased at an annual rate of 33.1% in Quarter 3 of this year. It decreased by 31.4% in Quarter 2. The growing economy is fueled by the success of the housing market. Experts believe that this will continue to 2021.
The American Dream of homeownership continues despite the economic stress due to COVID. The housing market is thriving and contributing greatly to the economic recovery.
If you are looking to buy or sell, contact South Florida's Real Estate Experts at Prestige Waterfront Realty by calling 954-830-7000 or email Tegov@AskPWR.com.