The atypical crisis generated by the COVID-19 pandemic affected the sectors of the economy differently, compared to the events that generated a recession in the past. The real estate industry has traditionally reacted with a gap of about six months compared to the rest of the economy, but this time it has reacted much faster, due to the expansion, depth and lack of predictability of this crisis.
Responsible for the 2008 financial crisis with subprime loans, the real estate sector is “taking revenge”, demonstrating an unprecedented state of health, fueled by very low interest rates and the desire for more home space of those engaged in remote working, now that the economy is affected by the pandemic.
Respected rental management Denver authorities substantiate that the supply of properties is a few percent higher than in the same period last year, as a result of the accumulation of several properties available for sale, during the state of emergency.
Whether new or old, homes and apartments sold very well in 2020. A total of more than 5.5 million homes were resold last year, up nearly 6% compared to 2019, according to data presented by the National Association of REALTORS®.
Interest rates have been falling since the beginning of the crisis and it is estimated they are unlikely to rise anytime soon.