Mortgage Market

Is the COVID-19 Pandemic Causing a Rise in New Construction Homes?

Jet Direct Mortgage

With the effects of the COVID-19 pandemic still in full swing, the idea of living in a brand new, freshly built home is sounding more and more appealing. According to CNBC, newly built home sales dropped down 85% from regular activity during the first four weeks of the pandemic. However, in the previous 2 weeks, we’ve seen those numbers start to rise back up. This influx of newly built home sales appears to be the result of renters purchasing their first homes, according to Devyn Bachman of John burns Real Estate Consulting. She states that the demand for newly constructed homes primarily comes from renting young couples who feel secure in their employment. Moving from cramped, urban areas to more spacious suburbs also appears to be a rising trend at the moment. Executive Vice President of Mid-Atlantic Builders, Stephen Paul states that they recently sold three spec homes with the intention of building more for those who “would rather just walk through a new home and buy it.” But we’re seeing many resale buyers looking toward homes that are not currently being occupied too. Lyssa Seward, President of Seward Group at TTR Sotheby’s International in Washington, D.C. states that “Vacant homes are still being listed and shown.” Some agencies are even limiting their listings to vacant or newly built homes in an effort to prevent the spread of the Coronavirus. Sources: