Despite the pandemic, the demand for homes is on the rise. In June 2020, The Mortgage Bankers Association found that there was a 26% increase in mortgage applications for new homes compared to the previous month.
Interestingly, buyers don’t want just any type of home: they’re particularly looking for single family properties. We already know that the typical house hunter is a female millennial, but why aren’t people as interested in multi-families, condos, and townhouses? Well, with so much uncertainty in the air, it’s likely that most people don’t want to have to worry about looking for and retaining tenants. Moreover, current house hunters may also be first-time home buyers. This means that they’re more likely to want a property that they can live in (not one to rent out for investment purposes).
How Sellers and Builders Can Take Advantage of Current Market Trends
Clearly influenced by “quarantine life,” today’s house hunters want spacious properties. Naturally, sellers with spacious homes will have an advantage. Still, it’s easy for realtors to undersell these key aspects if they aren’t informed; therefore, if you are currently trying to sell your single family home, make sure that your realtor knows to highlight your home’s roominess. This means accentuating it within your home’s online listing and showing it off during physical or virtual tours.
If you’re a builder, then the world is your oyster! Knowing that home buyers want room to roam, you should aim to build homes that speak to these desires. Really, you can approach it one of two ways: you can either build a home on a very large plot of land, or you can build a large home on a smaller plot of land. Whatever route you choose, you should not wait. If you don’t have the capital for such a project, then you should apply for a construction loan right away.