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Housing market booms despite the pandemic

Mariam Mackar
Created: September 25, 2020 09:01 AM

With more and more people working from home, more people are looking for bigger spaces or new environments to move to. This has caused the need for housing to surpass the supply of homes available in most areas.

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The pandemic has seen an increase in housing demand, particularly over the last three months.

"We had a huge slow down in March, April and may and we saw June, July and August really pick up-- so in June, July housing market sales really picked up at 20%... in August they were up 10% from where they were earlier this year," said Professor Jen Schultz from the Lebowitz School of Business and Economics and University Minnesota Duluth.

That is because interest rates are at a record low of 3% and there's a lot pent up demand from people not buying earlier in the year.

Close to home, Grand Rapids was listed as number 16 in a recent study analyzing US cities with the greatest housing upticks since the pandemic.

"Our brokerage Coldwell Banker has been around since 1947 and my father has been in the business for almost 40 years. He's made the comment recently that he's never seen it like this- this much demand and this much activity," said Mitch Kellin, Grand Rapids realtor.

With more people working from home and potentially needing more space, the market has seen more people moving out of larger metropolitan areas and into smaller towns.

With this high demand for housing comes low supply- which is good for those selling right now and not as great for those looking to buy.

Although large demands for housing have raised home pricing -with the national average now at 300,000 dollars- the low interest rates have widened many buyers pool of financially accessible options.

Credits

Mariam Mackar

Copyright 2020 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved

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