The pandemic that started in 2020 has laid waste on the economy in many ways. Millions lost their jobs, became furloughed, or had their hours reduced. Thousands of businesses closed their doors, sometimes indefinitely. As gloomy as the picture may appear, there is one ray of light amidst it all; real estate. Thanks to historic low mortgage interest rates, it has become very affordable for an increasing number of people to move into a new home.
While there is bound to be a correction after this boom, for the time being, things are looking very good for Realtors® like those of The Amazon Group at CENTURY 21 Tenace Realty. Located in South Florida, this team of four Realtors® have achieved a major milestone of $115 million in sales within the tri-county region. Focusing on luxury and senior markets, The Amazon Group has noticed that while sales have been great, the highest demand currently is for single-family homes.
Today, becoming a new homeowner is a bargain at the current mortgage interest rates. That means that it is more affordable for people like Millennials to move into their first home than it was in previous years. That is why we are seeing an influx of Millennials relocating from condos into single-family homes.
The historic low mortgage interest rates incentives moving into a new home. When the rates being to rise, people are more likely to stay put. The Amazon Group has seen demand go through the roof, and recently celebrated selling over 400 properties in South Florida.
Besides low mortgage interest rates, another reason for the high demand for real estate currently is the fact that millions of Americans are now working from home. There is no longer a reason to commute to work and live close to the physical location of their workplace. This has led to increased demand for homes located further away from cities, where there is more space and where home prices are more affordable.
Will this work-from-home situation continue once the pandemic is over? We do not know for certain, but it is likely that it will be some time before people start commuting long distances for work again. This means the real estate boom could continue through the rest of 2021 and maybe for years to come. The Amazon Group believes that looking 5-10 years from now, the housing market will look quite different from years past. If remote working is a shift that becomes permanent, people will be relocating to cities that are more affordable given there will no longer be a need to live near a physical workplace.
It is anyone’s guess what the future holds, but The Amazon Group at CENTURY 21 Tenace Reallty has seen quite a bit happen in real estate since its founding in 1997. For now, the market has high demand for single-family homes with low mortgage interest rates, leading to dwindling inventory. Eventually, mortgage rates will go up and there will once again be a shift in the market.
You can visit The Amazon Group’s website for more information.