Our market will remain strong despite a second wave of COVID-19.
Will a second wave of COVID-19 devastate the Cleveland area real estate market?
This is a good question to ask because, if you look at the infection numbers in Ohio, it’s worse than ever. As you can see at the graph at 0:41 in the video, we’re up to 363,304 confirmed cases as of the recording of this video, and both the number of cases and hospitalizations spiked once November started. Thankfully, the number of deaths didn’t follow suit.
However, I don’t think this will hurt the real estate market, and the primary reason is interest rates. They’ve been a huge driver of our market, and I don’t see that changing anytime soon. They averaged just over 3% back in March, but now they’ve dipped to 2.89%. Also, home prices rose during the initial phase of the pandemic despite stricter lockdown guidelines and an April unemployment rate of 14.8%—the worst market since the Great Depression. Since then, the unemployment rate has steadily dropped, and as of the end of October, it stood at just 6.9%. I’m not saying we should all pat ourselves on the back, but this is great progress compared to the situation we had in March.
Additionally, three pharmaceutical companies recently announced major progress on the vaccine front. Two of these companies reported that their vaccines were more than 90% effective. If a vaccine is ready for distribution by April, it will be an obvious game changer for our market. In the meantime, therapies have been developed that really work. Regeneron and Remdesivir—the same treatments President Trump received when he fell ill—have been approved for emergency use. None of this was possible back in March, yet the real estate market went up.
All of these factors point toward a stable, increasing Cleveland market throughout 2021. If you’re thinking of selling your home, don’t wait—take advantage of this market. If you’re thinking of buying a home, remember that rates won’t stay this low forever (although I believe they’ll stay low for a while), so take advantage of them now.
If you’d like help buying or selling or have any real estate questions, don’t hesitate to reach out to me. I’d love to help you.