Real Estate Sales Are Booming; Estimated to Exceed $160 Billion in 2021
FinancialNewsMedia.com News Commentary
PALM BEACH, Florida, Jan. 19, 2021 /PRNewswire/ -- The global pandemic shattered the world order and the US economy suffered its biggest blow since the Great Depression in the second quarter. Although the housing market briefly hit a pause in spring due to uncertainty and widespread stay-home orders, 2020 was still a record-breaking year in the residential real estate market. Despite the pandemic-induced recession, house prices in all the major markets continue to rise. According to economists and market watchers, the residential real estate sector has been highly supportive of the economic recovery of the country so far. It has emerged as a pillar of support for the economy. Although millions were laid off or furloughed it didn't prevent house hunters from buying homes across the nation. As a result, the housing market saw the highest pace of sales growth since the height of the unprecedented housing boom in 2005. Active Companies in the markets today include Presidio Property Trust, Inc. (NASDAQ: SQFT), Toll Brothers, Inc. (NYSE: TOL), Lennar Corporation (NYSE: LEN), VORNADO REALTY TRUST (NYSE: VNO), SL Green Realty Corp. (NYSE: SLG).
That expansion was driven by negligent lending in the subprime mortgage market and the current housing boom is driven by the intense demand and record-low mortgage rates. Both of these factors were driven by the coronavirus pandemic. Housing prices had already started rising before the pandemic arrived but the pandemic created a rapid acceleration in double-digits. The housing market has seen record-breaking growth since June after briefly put on hold during the outbreak of the pandemic this spring. As prices keep climbing month-over-month, it just shows the resilience of the US housing market in the face of an ongoing economic recession. A report from IBISWorld sad that the market size, measured by revenue, of the Real Estate Sales & Brokerage industry will reach $164.8 Billion in 2021 and expected to increase 0.7% during 2021. It said that: "The market size of the Real Estate Sales & Brokerage industry in the US increased faster than the economy overall… (and) the market size of the Real Estate Sales & Brokerage industry in the US increased faster than the Real Estate and Rental and Leasing sector overall."