Home Sales Boom During COVID-19 Pandemic

The coronavirus pandemic has led to layoffs and uncertainty in the economy, but that isn't stopping people from buying new homes.

Home sales were up 24.7% in July compared to June, according to the National Association of Realtors. Interest rates are a big factor. A 30-year fixed loan is at a record low 2.86%, according to Freddie Mac.

"Low mortgage rates is always the magical power that brings buyers into the market,” said Dr. Lawrence Yun from the National Association of Realtors.

Experts are also seeing an exodus from cities to the suburbs during the pandemic as more people are able work from home long term.

Long Island, New York, realtor Deepa Sachdev said her phone is ringing off the hook.

"The majority of people that are coming out are from the city. So there seems to be an influx of people coming in from Brooklyn, from Queens, and from Manhattan,” she said.

Another trend is people leaving Northern states for the South. Florida and Texas are seeing an influx of new residents.

"There’s a sizable number of new residents coming from other states. Perhaps the 0% income tax is a large appeal,” Yun said.

Now that Dawn Fallacaro's kids are out of college, she's decided to downsize, but the mother of four didn't expect the huge amount of interest from buyers when she put her New York home up for sale.

"Within four days, I believe, I think I had nine offers," she said.

Fallacaro's home sold in about two weeks and for more than the asking price.

Fallacaro is staying in New York but discovered being a buyer isn't easy as selling. There was plenty of competition when she looked at a home for sale.

"And when I pulled up, the lines, I'm talking I'm about 20 deep on line and it's already past the end of the open house time,” Fallacaro said.

If mortgage rates stay low, experts expect these strong home sales to continue.