The residential housing market overall has been extremely active over the last several years thanks to astonishingly low mortgage rates. Another factor is also driving the demand for suburban-area homes and for vacation homes. Space is a hot commodity in a pandemic, so homebuyers are increasingly looking at vacation home markets and suburban housing markets for their next purchase.
How significant is the demand? Home prices in El Dorado County, which includes Lake Tahoe, have shot up by more than 36 percent in a year. At the same time, homes listed for sale were on the market for an average of 50 fewer days. Many of the new buyers in the area have been searching for more space and a better lifestyle. They have largely come from neighboring areas, including Sacramento and the San Francisco area.
On the East Coast, this trend is also on display in numerous hot markets. For example, home prices in Cape Cod’s Barnstable County jetted upward by 31 percent in the last year. During this time period, homes were on the market for 46 fewer days. Other notable hot spots in this region are Orange County, New York, and Ocean County, New Jersey.
However, some housing markets are experiencing a significant decline as homebuyers are moving away from the areas. For example, in New York County, the average time it took for a home to sell over the last year was 184 days. It is not yet clear if the pandemic’s effects on the real estate market will reverse significantly after workplaces reopen fully and the need for social distancing declines.
It is not possible to accurately predict movements in the housing market and mortgage rate trends. With this in mind, you should connect with a mortgage representative today to inquire about home loan programs that are available to you today.
Contact one of our loan consultants to learn more.