Housing market continues to spike despite pandemic
MONTGOMERY, Ala. (WSFA) - The COVID-19 pandemic has not stopped the housing market from seeing its best numbers across the board in 2020.
The housing market is on pace to see a 6% increase from 2019 this year.
With interest rates at record lows, 2.6% for a 30-year fixed mortgage and 2.21% for a 15-year fixed mortgage, the lowest in nearly 50 years.
Subdivisions like Hampstead have benefited greatly from those low interest rates and they say 2020 has been one of their best years.
“We’ve seen a 46% increase in home sale contracts for the year and we have written over 64 sales contracts for houses here at Hampstead,” director of development Anna Lowder said.
Andrea Searor and John Gnan both recently built homes in Hampstead.
They say having to work from home was a leading factor to why they built in the subdivision because it offers amenities within walking distance.
“So, we figured that if we’re going to be working from home then and sort of stuck at home that we should be able to spread out a little bit more in the neighborhood that we live in,” Gnan said.
“It’s great to have the community built in when all of the restrictions off based are kind of preventing interaction but we still get that here so I kind of feel like I’m back home,” Searor said.
Housing experts believe the momentum will continue heading into 2021 with mortgage rates continuing to remain low.
“Hopefully, we all see COVID waning with as far as a vaccine coming out and people building up immunity, so that is our hope but at the same time the value of home and work from home is here to stay,” Lowder said.
Experts expect sales to grow 7% in 2021 and single-family housing starts are expected to grow at 9%.
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