Once the pandemic hit March 13, 2020 the housing market started to diminish even more. As we stand even over a year later, we enter a market with interest rates super low as 2.25%. I wrote a paper in June 2020 with my opinion. Families forced to stay and work from home for several months, interest rates falling, men found performing the to-do list. By this time many are claustrophobic and feel forced to to things. Many across the country had money saved, excellent credit and decided to buy a home is how this started in the pandemic. Demand truly was high in refinancing as well. Being that many can work from home, the relocated to one of the best State in the Country which was Florida for economical reasons. Florida boomed starting June 2020. Monthly supply of homes dwindled swiftly. It was noted with an acute surge of 25% and 30-40% of sales were reported purchased cash buyers paying up to 122,000 over listing price in Winter Garden Florida. Redfin reported a slow down in bidding war's in April reported 74.1% entertained multiple bids, May declined 72.1% and June s lipped 65%. With all this going on created a problem for first time buyers always getting beat out by all cash offers. This also created a frenzy competitive seller market. Builder's could not keep up with demand and even started bidding wars on new construction as well with inventory homes already on the market. It was reported many buyers ranged from New York, Connecticut, Kentucky, California and Texas. We saw virtual showing of homes and mandatory appointments. Sellers demanded buyers must be pre-approved before coming to see home to restrict COVID-19 unnecessary traffic in home. My personal opinion is that a flood of short sales and foreclosure's will take place between August 2021-August 2022 or even longer which will eventually level out the market prices. A typical builder builds 40-50 homes a year, now at minimum 70 homes as builders are scrambling to purchase land. It seems to be more Realtors than listings.
As time went by, we saw lumber rose over 170%, we now have a window shortage and many builders had to shut down and finished homes that completed the lumber and window installation. This does not make it better. The average home toppled an extra 33% on top of base price. Many also think a market crash is unlikely. Regardless of prices, communities that were just platted quickly had contracts. Even so a house just put on the market produced a contract within 3-5 days after bidding wars. Even rental property prices surged and scarce and strategic to acquire with much frustration. AirBNB and VRBO rentals are a very hot commodity since COVID-19 eased. Many have sold their home, banked the money and renting at a difficult time. These people are waiting tor the market to cool off.
This can cause a major issue in a time like this. This is something the counties must tackle and approve for growth. Many counties levied impact fees on each home built to cover cost. This entails repairing on all major roads and bridges, building bridges across the country. The government is surely aware of this.