Excerpt from GlobeSt.com latest article:
Mortgage rates have helped to prop up homes sales during the pandemic. Developer Baldwin & Sons has continued to see interest and active sales from homebuyers during the pandemic. While the fringe buyers have exited the market—decreasing activity—serious buyers have continued to look and have actually been fueled by lower interest rates.
“Mortgage rates have drifted downward and are currently hovering at historic lows. Rates represent an incredible financial incentive to purchase now,” Melissa Hazlett, VP of sales and marketing for Baldwin & Sons. “While some fringe buyers have indeed exited the market, serious buyers remain and are responding favorably. Mortgage applications have reportedly increased in response to the highly attractive rates and there are still many serious buyers are still in the market.”
Unemployment rates and shelter-in-place restrictions will no doubt put downward pressure on sales activity, particularly in the short-term. However, the developer is expecting a quick recovery. “The country has sadly experienced a marked spike in unemployment and furloughed workers,” says Hazlett. “We are all hoping that situation turns around as quickly as possible. However, there are many people with secure jobs and income who remain in the market and who are willing and able to take advantage of the incredible finance rates.”
Housing is not only an essential need, but it is also suffering from a severe supply shortage— and the pandemic will only exacerbate the problem. The shortage of housing will also help to drive housing sales later this year. “The state’s housing supply is an ongoing concern likely considered by the governor when he decided to allow construction to move forward,” says Hazlett. “Many sites have remained active with precautions in place to reduce exposure risk and keep crewmembers safe.”