Evolving Real Estate: From 2020’s Frenzy to Today’s Opportunities

Word Count: 542 words (3 minutes to read)

Many things happened in 2020. Today, you’re here to gain a better understanding of the real estate frenzy over the past three years, presented in simple terms, and what lies ahead…

2020: Historically Low Interest Rates, Soaring Prices, Fierce Competition

In 2020, when COVID hit, the stock market crashed, and the U.S. had no choice but to lower interest rates and inject money into the system. The demand for real estate surged, combined with a low inventory of homes, creating one of the most competitive seller’s markets we’ve ever seen.

2020 Seller’s Market: Pros and Cons


  • Low-interest rates made for low monthly payments.
  • Homes became affordable for many people.
  • A once-in-a-lifetime opportunity to lock in a 2-3% fixed interest for the next 30 years.


  • Skyrocketing demand and a shortage of homes for sale created massive bidding wars.
  • People were paying $20k-$100k over the value of homes.
  • $10k-$50k non-refundable deposits.
  • No chance to inspect the property or ask for repairs.
  • Complete madness behind the scenes as Wall Street and companies with billions of dollars were buying homes with cash.
  • making it almost impossible for everyday people to buy a home.

Example: For a $350k home, you’d need about $25,000 cash with a 3.5% down payment, plus closing costs. To have a chance of getting an offer accepted, people were paying $20k-$100k over the value, so most customers needed $45,000 to buy a $350k home.

Fast Forward to 2023: A Balanced Market Emerges

Today, interest rates have risen, reshaping the market into a more balanced landscape that favors buyers.


  • It takes less upfront money to buy a home.
  • Buyers can now take their time finding the right home.
  • The ability to negotiate good deals for buyer.
  • Can inspect property and request seller to make repairs.
  • You can’t change the sales price of a home, but you can change your interest rate through refinancing.


  • There is an affordability issue, as people may find it challenging to afford the homes they want.
  • Higher rates lead to higher monthly payments
  • Higher prices.

Example: For a $350k home, at a minimum, you’d need about $12,250 cash when the closing costs are covered by the seller and CityWorth’s homebuying bonus.

Looking Forward: Prices Rising and the Opportunity to Build Equity

As we look ahead, low housing inventory and fewer sellers continue to drive home prices upwards. Barbara Corcoran from Shark Tank predicts a further, “10-15% increase in home values when interest rates drop.”

Can’t Afford to Buy Alone? Consider a 50/50 Partnership

If purchasing a home individually is financially out of reach, consider buying a home with a friend, family member, or colleague through a 50/50 partnership. After a few years, you can sell the property, take the equity and buy your own home. To read more about CityWorth’s 50/50 Partnership Program click here!

Why does all of this matter?

If you are yet to buy your first home, this market could be your opportunity to buy a home with little money upfront. Remember, don’t wait to buy real estate… buy real estate and wait!

CityWorth | America’s #1 Employee Benefit for Real Estate is here to educate and guide our members, making it possible for you to create wealth and security through real estate.


Tommy Shumway, VP of Benefits




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