The real estate market in Houston, like many other places, experienced significant changes during the COVID-19 pandemic in 2021. Homebuyers and sellers had to adapt to a new reality shaped by the virus and the safety measures put in place to combat it. In this article, we’ll explore how the real estate industry evolved during these challenging times, focusing on key trends and shifts in demand.
The rise of houston house buyers
One notable development during the pandemic was the emergence of Houston house buyers as the go-to solution for those looking to sell their homes. As the pandemic unfolded, the housing market faced unique challenges. In March 2021, while home prices in the U.S. reached an all-time high, sales began to decline due to a worsening shortage of homes. This information comes from a report by Mansion Global, citing the National Association of Realtors.
Shifting market dynamics
According to the association’s data, the median sales price of completed homes by early April had reached an impressive $329.1 thousand. Year-over-year, homes had risen in price by a substantial 17.2 percent. However, home sales in March were down 3.7 percent from February’s numbers. These statistics might raise concerns about the housing market, but there’s more to the story.
Embracing digital transformation
Over the year and a half since the first pandemic-related restrictions, the real estate industry has adapted significantly. It not only moved viewings online but also transitioned the entire buying process into remote mode. Today, almost everyone in the industry has mechanisms for online sales, and those who don’t rely on third-party platforms to facilitate transactions.
The demand for new homes
One of the most significant shifts in demand has been towards new homes. The pandemic has accelerated people’s desire for immediate gratification, pushing them to move into their new homes as soon as possible. The traditional practice of buying a house and renovating it over time has become less popular. Most clients now seek modern, smart buildings with reliable high-speed Internet connectivity. Some real estate firms report that 7 out of 10 inquiries are for new or fully renovated and upgraded properties.
Changing preferences
The pandemic has caused people to reassess their priorities when it comes to real estate. They now desire brighter, more spacious properties with larger rooms and more open spaces. With remote work becoming more common, the ability to work from home has become essential, leading to a higher demand for properties that support this lifestyle. In 2020, homes without turnkey renovations saw low demand. For example, in August of that year, sales of houses with quality repairs increased by 65% in the market as a whole and by 70% in the business class segment.
A quest for space and fresh air
Another noticeable shift in demand is the size and type of properties sought after today. People now crave more freedom, space, and fresh air. The pandemic altered our habits, and quarantine in 2020 highlighted the importance of outdoor spaces. Many realized that their properties lacked gardens, patios, or large terraces, which had become vital for enjoying nature and spending time outdoors. Aspects that were once considered optional are now central to the quality of life.
Conclusion
In conclusion, the COVID-19 pandemic has profoundly impacted the priorities of homebuyers in Houston. A significant number of people now consider the possibility of buying larger homes or homes with plots of land in the countryside. Moreover, the trend towards having family members in separate living spaces has gained traction during the pandemic. These changes in demand and preferences have reshaped the real estate landscape in Houston and are likely to have a lasting impact on the industry.