July 17, 2020

Pandemic Drives Positive Housing Trends

If current trends continue, the percentage of Americans who own homes - which has been stagnant for well over a decade - may actually see improvement in 2020.

Purchase applications were up 33% over last year by the start of July and the sale of newly built homes is expected to show a 55% annual increase when the June numbers become official. With asking prices on the rise, total listings also went up by almost 15%.

So what is the driving force behind this exciting news? Believe it or not, it may be the Covid-19 pandemic.

Plummeting Rates Mean Improved Affordability

  • Improved affordability appeals to both first time buyers and those looking to upgrade.
  • Wait-and-see shoppers from early in the year are being drawn back to the market.
  • Favorable market conditions entice owners who might otherwise not consider selling.

Work from Home Options Create Movement

  • Remote work gives employees the flexibility to relocate anywhere.
  • Workers are moving to smaller cities with cleaner air and less congested neighborhoods.
  • Urban renters are leaving their apartment buildings to buy more affordable suburban homes.

Necessity is the Mother of Innovation

  • Improvements in client-facing processes have made it easier than ever to shop for a home.
  • Video walk throughs and virtual open houses bring the home to the buyer.
  • Touchless online loan applications and digital signatures give borrowers exceptional flexibility.
  • Secure online document handing makes time-consuming visits to the office totally unnecessary.

While 2020 has had its challenges, it has not been all bad. For the first-time buyer moving into their very first home it is a milestone. For the young family moving out of the city to the suburbs, it’s an exciting new chapter. Increased home ownership means more individuals and families have access to the American dream. We think that’s pretty good news.

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Bay Equity Home Loans – Boles Group is a team of lending professionals located in Gilbert, Arizona and licensed to originate home loans for purchase or refinance in nine states (AZ, CA, CO, ID, MN, NM, NV, OR, WA). Boles Group lending professionals have the knowledge and experience to create solutions where other lenders create problems. The team prides itself on responsive, accurate communication and is highly regarded by clients and business associates alike.