There is no question that 2020 was a difficult year for most industries, including home builders. However, when many people thought there would be chaos and a significant dip in sales and work, this ended up not being the case. Keep reading to learn how the homebuilding industry fought the pandemic and won.

Homebuilders Owe a Lot to Real Estate Agents

It was clear very early on in the pandemic that in-person open houses were going to be impossible for the foreseeable future. This could have put a damper on sales of new homes, but real estate agents and marketers rose to the occasion and sped up a trend that was already gaining speed: remote viewings. They also quickly implemented real estate software that allowed for the digital signing of contracts and other documents.

By Summer Home Sales Were Even with Or Better Than “Normal” Levels

While there was an immediate dip in sales, by summer the real estate markets in most major metro areas saw significant boosts and seasonally adjusted monthly housing stats were back to “normal,” with some areas actually higher than expected.

Groundbreakings Were Up for Single-Family Homes

By the end of the year, single-family groundbreakings were definitely in good shape in most areas. Across the country, the year ended with single-family groundbreakings up by more than 12% compared to 2019. However, the news was not as good for multiple-unit groundbreakings, which ended the year down nearly 2% over 2019.

Permits Have Continued to Be a Problem

Even as it was clear that demand was increasing, not as many properties were able to break ground due to the slow pace of permits in many areas. Some states have closed these offices except for emergencies, and others are available only via appointment. When you cannot get started on a process without this step, and this step becomes impossible, it is easy to see why this is an issue.

Growth is Occurring in Surprising Places

We are seeing many commercial property clients choosing to move their offices to smaller cities with lower costs of living, or allowing for permanent remote work from their employees. This means that cities that were once seen only as commuter areas are now being looked at as cities upon themselves. We will see how this changes the landscape for the next decade.

We Look Forward to Working with the Industry

At Fund Control, we have worked with real estate professionals long enough to know that the only constant in this industry is change. We continue to adapt, just as others in the market do. Call us at 800-625-5972 if you would like to set up a free demo to see how we can help your company.