According to CNBC, the leading global business news provider, existing home sales amid the pandemic outbreak were 10.5% higher compared with August 2019. This is the highest sales pace since December 2006, before the Great Recession. Reasons of the soaring price are as follows:
On the one hand, the COVID-19 pandemic has imposed an extremely serious impact on all sectors of society, and economic development has been hindered greatly. On the other hand, people’s activities are greatly restricted, which together lead to a plummet housing inventory and a short supply. Charisse Jones on USA TODAY pointed out that “the number of homes available to buy was down. The 1.5 million houses, condos, and townhomes available for purchase in July was 21% lower than the housing inventory on the market one year earlier”.
The economy is hit severely under the pandemic, and the government issued a series of preferential policies in order to warm up the dismayed situation. Real estate industry has witnessed lowered mortgage rates as a result. In order to enjoy this preferential policy, buyers are more willing to buy houses. “The job losses are principally coming in the area of leisure and hospitality or retail sectors'”, said Laurence Yun, chief economist for the Realtors. “Those are lower-paying occupations so they are not really in the home buying market ... The upper-income bracket, they are more stable in terms of jobs, and they're trying to take advantage of these lower mortgage rates.”