Working from home is fueling the current real estate market. There are other factors that are driving the volume of home sales, but we will stick with working from home in this post.
The COVID-19 pandemic has millions of office workers working from home. Some companies have already announced that they will divest themselves from the expense of office space, and continue with work from home as the new normal.
School closures have sent millions of children home for remote learning through online classes, and parents supplementing teachers to keep the children's education on track.
Houses were plenty spacious before the pandemic, but with mom and dad taking over portions of the house for office space, and kids requiring dedicated classroom space, folks are discovering that their homes are too small for their new needs. So folks are painting and primping their houses for sale, and studying the market for larger homes that will meet the family's requirements.
It's a great time to be a seller, as house values skyrocket, bidding wars are common, and there are plenty of folks just waiting for new listings. However, after an overcrowded family sells their house above top-dollar, they have to dig deep into their bank accounts to win bids for their next, larger house. The proverbeal double-edged sword. The sale of the old house giveth top dollar, and the purchase of the new house taketh away.
New home builders are backlogged six to nine months with new orders. Some builders have told their sales staff in their model homes to stop taking new contracts. Other builders are hosting lotteries to choose which buyers will have the privilage of writing contracts on a handful of available homesites.
The buyers who have survived the buying process say it was worth the wait to have dedicated workspaces for mom and dad, and a separate classroom for the kids. They were pleased with the lower interest rates that made it possible to buy up to a larger house, while maintaining, or lowering their mortgage payments, thanks to 3%-3.5% mortgage rates.
When your time comes to move, you will need a pre-approved home loan (unless you are paying all cash for the house) from a reputable mortgage banker, who has a stellar reputation with local REALTORS. Often it's not the highest bidder who gets the house, it's the buyer with a respected local lender, and a well known title company that wins out over some internet lender, with a flimsy pre-qualification letter, and a title company nobody has heard of.
Markita Woods is a highly respected local lender, who gets your buyer pre-approved through underwriting before the buyer makes an offer. Thousands of folks have trusted Markita to get their loan approved ahead of time so that they could buy with confidence. If you want to make your offer stand out above the crowd, call Markita, The Queen of Mortgages at 703-929-2274.