Why are People Moving in the Midst of a Global Pandemic?
As around 22% of US adults have moved or know someone who has moved during the pandemic, this is a question many people have been asking throughout the past 5 months. With all the uncertainty, why now? In Central Indiana specifically, the housing market has continued to be hot throughout the pandemic. Below are some of the reasons that people are making a move during this uncertain time.
- The Pandemic Itself: This pandemic has forced people to take a deeper look at how they live. People have slowed down and stayed home much more. If everyone is staying home all day & every day, they want to love where they live and where they are quarantining. House Renters started thinking about the fact that they want to be able to do projects around the house, but then have realized it would be much easier if they owned a home themselves.
- Tax Refunds: Buying a home is one of the ways that you can regulate your tax refunds.
- COVID Stimulus Checks: Some Americans are putting their Stimulus Checks to good use by using them towards a down payment.
- Low Mortgage Rates: Low mortgage interest rates are driving many renters to buy a home. Renters are realizing that they would spend less on a mortgage than they are spending on rent and that if they purchase a home they’d be able to build equity in their own property. Home interest rates have started to increase recently, but are still below 3%. Now is a great time to buy your first home or upsize if you are ready for a larger space.
- Social Distancing & Quarantine: Quarantining during the health crisis a major reason people wanted to get out of an apartment. Many renters live with another person or other people. Think about quarantining/social distancing in an apartment with your roommate while everyone you live with is working from home. Multiple sources have mentioned to me that there is literally not enough space for them both to be working in the living room and/or it gets too loud. Lastly, when spring and summer rolled around people started realizing the value of yard space and enjoying a socially distanced summer in their own yard.
- Low Inventory: The low home inventory in Central Indiana makes it a great market for sellers, but offers challenges for the many buyers. For sellers, the low housing inventory with a high demand has allowed for the median sale price of a home in Central Indiana to rise every month throughout 2020. According to MIBOR, in January, the median sale price was 182k, then in July, it was 225k. Low home inventory is a great reason for sellers to sell right now and get the most equity out of their home.
Thinking about buying or selling for one of the reasons above or a different one of your own? Call, text, or e-mail me- I would love to chat!
Stay safe and healthy!