The Pandemic’s Impact
The COVId-19 pandemic has impacted the world in a big way, especially the real estate industry.
The National Association of Realtors found in their June 2020 report that existing home sales jumped 20.7% from May 2020. As the summer turns into fall, that trend continues to play out across the country.
WHY THE SPIKE?
Real estate experts attribute more time at home as a big reason why families have decided to move into new homes. Quarantining and locking down in a home that doesn’t fit a family’s practical needs can spur a home search.
Many families are also deciding to homeschool their children, giving them more flexibility when it comes to location. The remote-working phenomenon also has enabled professionals to cut the cord on the geographical ties to their jobs.
ADVANTAGEOUS INTEREST RATES
Mortgage interest rates have been at historic lows for almost 20 years, with big drops during the pandemic. Rates dipped below 3%, giving many Americans the chance to get into a 30-year mortgage at a low rate.
Ask your local mortgage broker what kinds of loan options you have as a homebuyer. The more options you have, the more well-informed you can be about next steps.
BUYER INTERESTS
If the market is up, what are buyers looking for? According to an August report by Axios, it’s fresh air, backyards, home offices (for two adults), a homeschooling area, space for pets, home gyms and proximity to beaches, lakes, parks and bike paths.
In terms of what types of dwellings are hot at the moment, searches on the Compass Real Estate website for houses with pools are up threefold, searches for single-family homes are up 40%, and searches for condominiums and co-ops have decreased.
With low mortgage rates and the population fleeing to more suburban areas due to worries about overpopulated areas, the real estate market will continue to shift. Lean on your local realty professionals to help you successfully navigate your journey to moving during these unprecedented times.