Home Demand is High
Many predicted that the real estate market would crater because of COVID-19. These predictions were wrong. The truth is that home demand is high and there are lots of people looking to buy. People are not waiting for the pandemic to end to buy their dream home. They are doing it right now. The team at Streamline Realty is here to help you dive into some of the reasons that today’s real estate market is flooded with buyers.
Low Mortgage Rates
Mortgage rates were already at historic lows. That did not stop the rates for 30-year fixed-rate and 15-year fixed-rate mortgages to drop even lower. The average rate on a 30-year-fixed rate mortgage fell to 3.106%. The average rate on a 15-year fixed-rate mortgage fell to 2.682%. Buyers are taking advantage of these rates and are not waiting to buy homes.
These low rates have people buying homes regardless of the pandemic. People are in such a rush to buy homes that they are willing to do it sight unseen. Low mortgage rates are pushing people who have been on the fence into motivated buyers.
Backyards are In Demand
A lot of our lives have been reshaped by the pandemic. Same is true for home buying trends. One of these trends is that people are ditching their apartments and condos for single family homes. Faced with the thought of spending the foreseeable future in small apartments, some are seizing the moment to get more space. Now that we spend a lot of time at our homes, the thought of a backyard and open trails is a lot more attractive.
Since March real estate demand in places like upstate New York have spiked as people tried to leave Manhattan. Maine, Colorado, and Montana have also seen an uptick in interest from people who are looking for more room. Health experts suggest that outdoor activity is safer than indoor activity during the pandemic. Ditching your high-rise condo for a single-family home in the suburbs is one way to give you more access to the outdoors.
Second Homes are on the Rise
One real estate trend taking shape in the wake of COVID-19 is people are buying second homes. Some people looked at their quarantine housing and decided to ditch their old place. Many others do not want to abandon the places they love for newer homes. Instead, they are just buying second homes.
There are two types of second home purchases that buyers are jumping into: vacation homes and nearby retreats. Vacation homes are on the rise as the pandemic has restricted our typical vacation plans. Typically, families use the summer months to travel all over the country or even the world. However, that cannot happen this year due to the virus. Many buyers are looking at purchasing a second home as a way of securing their own safe vacation. Real estate in far away rural places or even private islands are becoming increasingly popular.
Just as popular as buying a far away second home is buying a second home just around the corner. This has more to do with more and more jobs becoming remote, as well as school. Even spacious homes seem more crowded when multiple people require a home office for work or school. Second homes are a way to alleviate the overcrowding. Instead of leaving the house for the office every morning, some people are now heading to their second home. This prevents you from having to turn a room already in use into a new home office. A second home provides a blank slate that you can turn into a versatile space for work or school.
Even though many sectors of the economy are uncertain, the home buying market is red hot. If you want to take advantage of low mortgage rates, are looking to upgrade, or want a second home, then contact us. No matter what your reason is for wanting a new home, the team at Streamline Realty is here to help your dream become a reality.