Nov 1 2020 38376 1

Dated: November 1 2020

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The housing market faced uncertainty in March, but now ‘it’s a circus’

The housing market faced a lot of uncertainty when COVID-19 caused the real estate industry to pause under shut-downs, but low interest rates and the desire for more space have turned this year into a boom time for real estate agents.

“I’ve never seen bidding wars – I mean, you know, randomly here or there – but I’ve never seen bidding wars with consistency in the fall like I have this fall. It’s crazy,”

HousingWire caught up with real estate agents across the U.S. to ask what their markets look like now compared to the summer and what they think the next few months could hold. Across the different markets, the agents consistently reported bidding wars amid heightened demand for single-family homes, low inventory and an increase of buyers fleeing big cities.

The demand might be a little less crazy now than during the summertime, but it still remains significant, as more people are leaving cities for more space.

 “We have even seen people move to theirvacation home, or move to their second home, so that their children could go to school,” “I know people who have either moved or they’re spending enough time with their second home that they’re sending kids to school there.”

Consumers working from home or schooling from home want more square footage since thehome is more than just a home now, it’s a daycare, an office, a gym and a school. Pool permits are up over 200% in many areas.

“What I’ve seen is this pent-up demand of people that need more square footage, that need a place to work out, need a place for their nannies to hang out with their kids while both the husband and wife are working from home, I think that’s kind of been the driving force, just the way we utilize our homes has changed so much due to COVID and being quarantined that people need more square footage. Their housing needs have changed. That, coupled with the all-time low-interest rates, it gives the buyer a lot more purchasing power.”

Although other cities picked up right where they left off when real estate restrictions were lifted in late spring and early summer, the market started picking up at the end of August. Normally, home-buying season has slowed down by that time and families are settled down just in time for school to start, but that’s not the case this year.

Because of the aid of virtual tools, the typical homebuyer has changed the way they look for homes, making it possible to do it anytime, anywhere. Many arebuying sight-unseenin Denver.

“I believe it’s gonna slow down at least a little bit during the holiday season, just because I think people have been waiting for that… it’s a time for family and love and hope and it kind of gives them that good feeling.  I think everybody’s just kind of waiting for that to happen and I think they’re going to take full advantage of that time. So, I believe it’s going to slow down a little bit, but I don’t think it’s going to slow down as much as it normally does.

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