Applications for residential loans are up 20% year over year and borrowers are ready to buy.

Defying high unemployment and an economic recession, the housing market has surged during the COVID-19 pandemic. That isn’t likely to let up heading into the winter months, said Lawrence Yun, chief economist of the National Association of Realtors. “2020 has been a year of surprises,” Yun said, singling out the robust housing market in the face of a global pandemic. “This winter may be one of the best winters for sales activity,” Yun said. “It won’t match summer or spring sales numbers, but on a winter-to-winter comparison, this could be one of the best breakout years just based on the fact that pending contracts are at such a higher level.” Applications for residential loans also are up 20% year over year, which reflect buyers in the pipeline that have been approved for home loans and are ready to buy. What’s next for 2021? A persistent housing shortage will likely keep home prices elevated, while new- and existing-home sales will continue to rise as record low interest rates and a work-from-home trend give housing markets a boost, Yun said. Yun believes the economy likely will continue a strong recovery -- dependent on a successful vaccine.

Source: The NAR