House the market, you ask?
After a brutal couple months (which equates to 250937 days in corona years), stats show that the housing market could actually be leading the economy's recovery. Mortgage applications rose to an 11-year high. Interest rates are at all-time lows. Average home prices across the country hit a record high of $365k. Buyers are like, what pandemic?
Americans' home-spending habits aren't changing as drastically as they have during past recessions, showing that people are confident that this too shall pass and the economy will get back on track. 8.5 out of 10 experts agree: the economy will begin to recover in the second half of 2020. Which is pretty much like, right now.
Why is everyone betting on the strength of the housing market?
Mortgage rates are at historic lows, again. In case you've been living under a real estate rock and haven't yet heard, borrowing money has never been cheaper.
Also low: the supply of available homes. Older folks are staying put, thus not selling. Fewer homes are being built. And foreclosures are on a temporary hold.
Buyers are confident that prices will rise. Consumer confidence is lifting asset prices--houses, stocks, you name it. And during a worldwide shelter-in-place, it turns out that shelter (aka housing) has proven to be kind of important.
Over the past few months, most homes have been sold to individual buyers who intend to live in them, as opposed to investors. Maybe there will be fewer cash offers to compete with now? Many buyers are trading up, leaving their rentals, and seeking more space and solitude. Generally, mid- and lower-priced properties are moving quickly, but luxury homes are taking a hit with lower demand and higher supply.
While this data might be comforting to some, others are concerned about rising home prices and the widening gap in affordable housing. Home prices have gone up faster than most people's incomes, and the pandemic is only accelerating that trend. It remains to be seen what will happen long term (mostly because the crystal ball everyone pretends to have doesn't exist), but for now, it looks like our economy is slowly but surely on its way to recovery.