With so much happening over the past few months, you might be wondering how the current health crisis is impacting real estate trends.
After Covid-19 cast a gloomy economic outlook earlier this year, analysts predicted decreased homebuyer demand and a depreciation in home values.
But recent reports indicate the opposite may be true. Builder confidence is soaring and there’s an increase in home sales compared to the pre-pandemic days.
There’s a Demand for New Homes
Builder confidence in the market for newly-built single-family homes increased six points to 78 in August, according to the latest NAHB/Wells Fargo Housing Market Index (HMI).
“The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI,” said NAHB Chairman Chuck Fowke.
Despite the health crisis and economic shutdown, the number of newly constructed homes being built in 2020 will be almost the same as 2019.
Existing Homes are Selling
A recent report from The National Association of Realtors (NAR) revealed the housing market activity this July soared 24.7% from June 2020, an all-time high for month-over-month growth.
“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days. With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.” said, Lawrence Yun, Chief Economist for NAR.
Buyers Are Changing the Way They Shop for Homes
Location Independence: With remote working on the rise, buyers realize they don’t need to live near the office anymore. Instead they are expanding their search radius, looking for more space and privacy in the suburbs, the country, and even making their typical second-home purchase their primary residence.
Home Gyms: Not only are home offices trending, health and safety concerns have put home gyms higher on the home buyer list.
Outdoor Living Space: Outdoor fireplaces, kitchens and sanctuary inspired landscaping has been trending for the last few years. And as many are spending more time at home buyers are looking for a larger yard with potential to create an outdoor oasis.
Read More: Metro Detroit Lender Lists 3 Ways Telecommuting is Changing the Way We Buy Homes
Looking for an Oakland County Home Lender?
With 35 years of industry experience, Julie Krumholz has worked in nearly all aspects of mortgage banking.
Throughout the years she has worked in processing, closing and loan origination, underwriting, QC auditing and has even co-owned a mortgage brokerage firm.
If you are looking for an experienced Oakland County Home Lender, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.
