The pandemic of 2020 has Americans looking at their entire family in a new light. Days of uninterrupted quarantine brought fantasies of expanded rooms for each family member have alone time or relax outdoors.
This trend brought a sudden boom of moving plans for people from all walks of life. Here’s an overview of how the pandemic is affecting moving plans across the country.
Waiting for the Fed
To say COVID-19 caught Americans off guard is the understatement of the year. The American economy struggles to maintain it’s balance in the midst of utter financial chaos among Fortune 500 companies.
There are companies that immediately shuttered their businesses in the face of the shutdown as they were unable to sustain themselves for even a week. But with this tragic state of economic affairs, came an option for the Federal Reserve bank to right past wrongs of major corporations.
One of the major changes that happened was lowering interest rates to make debt more affordable. Interest rates reached zero at one point.
This made it possible for consumer debt to be a lot more manageable giving families with stable income a free pass. Mortgage interest rates never reached zero but the cutbacks did trickle down.
People began to realize that the sudden low cost of homeownership might mean be just the opportunity needed.
Another opportunity that triggered moving plans for Americans is the economic stimulus sent to each American family. The government’s hope was that the millions of Americans out of work because of the pandemic could find some relief in a lump sum payment.
The cash included money for each adult and child in the home. The amount you received was based on your overall household income.
The government didn’t hold off on sending checks to people who didn’t lose employment. Now, anyone and everyone had more money to put towards buying a new home or placing a deposit on a new rental.
People realized that they might not have a second opportunity to save money like they could in the midst of the pandemic. The lowered interest rates, a lump sum of cash, and available housing inventory made moving plans seem like the best idea since sliced bread.
Cash on Hand
Every American has the right to participate in economic stimulus activities under the bills approved by the Trump Administration. If you didn’t have a job, you could receive an additional $600 in unemployment payments as long as you qualified for regular unemployment.
If you did have a job, you received money as usual. People without jobs who didn’t earn enough to qualify for unemployment received an alternative source of unemployment every week.
This truly transformed the amount of cash on hand Americans had for down payments. Cash savings to cover the cost of moving plans is one of the biggest barriers to moving into a new home.
The pandemic brought a strange new set of opportunities for home buyers and those looking to upgrade their rental.
The Right Move
The final straw for many American families navigating the unusual pandemic of 2020 was living conditions. During the shutdown, every business that was considered non-essential was forced into a virtual environment.
In other words, everyone was forced to work from home or be laid off. Schools closed turning children into a virtual-only environment.
This meant parents were given the impossible task of teaching their children while at work. In no world have parents ever operated in a professional capacity with small children in tow.
It’s become the new normal for American families, however. Surviving this fact is a top priority among families with a steady income.
Many of them are looking for ways to support their child’s new virtual learning environment while making sure they have enough space for online meetings.
Families want more space. Homebuyers want noise control. After a summer of closed attractions, families also want outdoor space that’s at least 6 feet away from neighbors.
All these new needs help Americans cope with the new normal. Unfortunately, there’s not enough inventory to support every request.
Families might find themselves in bidding wars in certain markets.
Why is there a shortage of inventory in real estate? One of the programs the Trump Administration implemented was a foreclosure moratorium.
This meant lenders couldn’t take back properties because homeowners weren’t able to pay. People lost jobs by the tens of millions during the first few weeks of the pandemic.
The government wanted to prevent an economic crisis with a boatload of foreclosures right away. This moratorium allows homeowners to remain in their homes until after the pandemic without worrying about foreclosure.
This means they have more time to save if they need to move, but that people who want to move won’t have as many vacant properties to move into. The foreclosure moratorium limits housing inventory by its very nature.
But where there’s a problem, there’s also opportunity. The foreclosure moratorium might also mean homeowners in distress have stopped paying their mortgage.
When the foreclosure moratorium is up, you’ll hear homebuyers rushing to make offers on properties falling into foreclosure. You won’t have to look up how to move a gun safe because movers will be waiting in the wings to help out.
Trouble Making Moving Plans
Don’t be frustrated if your moving plans aren’t going as smoothly during the pandemic. With sporadic closings and reopenings, housing inventory is unstable at best.
There won’t be any convenient option for finding great housing until after the dust clears in 2021. For more information and tips, visit our blog for updates.