New Home Sales on the Rise Due to Pandemic
New stats have come in via LinkedIn that shows an interesting real estate market trend. New home sales have jumped a whopping 55% since last year.
This is a HUGE increase! We are observing that more and more people are taking a preference towards less congested areas with their own living space. This is not only due to COVID and the lockdown, but many millennials have begun to settle down and have families. The mortgage rates also have increased buyer interest in homes of all types!
New construction homes are gaining more popularity as well for the following reasons:
- There is limited inventory as many occupied resale homes have been pulled from the market due to Coronavirus. Sellers do not want showings in their homes while they are still occupied which is understandable. If the home is vacant, by the time buyers submit their offers, the home of interest is already under contract.
- The Millennial generation is beginning to transition from renting properties to buying homes and townhomes. This demographic is not interested in having to tackle and plan renovations and upgrades. Many clients are looking for a move-in ready home that requires little to no reposition work.
- Due to Coronavirus, many renovation projects are delayed to not overcrowd the space. Buyers do not want to have renovations going on while residing, sheltering in place, and often working in their home. Some renovation projects have even been placed on hold all together until the Coronavirus cases decrease, which is still unpredictable.
The demand rings true with our experiences lately in and around Tampa Bay. One of our most recent resale listings pictured above went under contract in less than a week. With mortgage rates being as low as they are buyer interest in real estate, in general, is truly soaring. Home prices have either stayed or increased due to spiking demand for real estate. While sellers have dominated the real estate market for several years now. Today’s market conditions make it clear that now is an advantageous time to sell.
What are some of your thoughts on how the pandemic has affected the housing market in your area?
~ SI Real Estate Tampa