SPRUCE PINE — Despite the negative economic impact the ongoing pandemic has had on many markets, the local real estate market has seen a significant rise.
Co-owner of Tree House Mountain Realty Vicki Greene said it’s been a surprisingly busy time.
“I don’t think any of us were expecting to see so many people wanting to buy a home,” Greene said. “But, I think with people having to be at home so much, during the early stages [of the pandemic] especially, has made people really consider the value of a home.”
A lot of people buying homes in the tri-county region are not locals, though. Greene said she attributes this to COVID-19 as well.
“They want out of the big cities where they saw a lot more restrictions, I think,” Greene said. “Whether it’s a vacation home or moving here in the long-term, people see this area as an escape.”
Kelly Jones, an agent with Proper Realty, said she is also seeing an influx of people from larger cities looking for vacation homes.
“Something like a pandemic really makes people reevaluate their priorities and it seems like a lot of people’s priorities went to having a safe haven home,” Jones said. “They want to have a better option for a quarantine if this happens again.”
Alicia Thomas, a broker with Tree House Mountain Realty, echoed similar sentiments but added that she attributes a lot of it to the low interest rates.
“The low interest rates has definitely been a factor,” Thomas said. “Yes, people are craving a home right now, but that low interest rate is such an incentive to buy right now because they’re expecting that not to last. It usually comes in cycles.”
According to US Bank’s website, on Sept. 20, the rate on a 30-year fixed mortgage rate was 2.99 percent.
In March, the Federal Reserve announced it would buy mortgage bonds to keep credit flowing amid the pandemic, so mortgage rates dropped significantly. Before this announcement, the average rate for a 30-year fixed mortgage was 3.65 percent.
According to the National Association of Realtors, existing home sales jumped 25 percent nationally in July, which is the biggest monthly increase on record. The prior record for a monthly gain was a 21 percent jump seen in June.
Due to the high demand, however, the biggest concern for all the real estate agents is the lack of homes they have to sell.
“Because there is such a demand right now, it’s been hard to keep up our supply,” Thomas said. “Right now, I only have one house listed and I’m getting nervous.”
Jones said they’ve had the same concern at Proper Realty.
“The ratio of buyers to sellers is off right now,” Jones said. “It’s definitely been a bit difficult that we have so many people wanting to buy here, but we have nowhere to put them.”
Jones has been in real estate for four years, but she only recently started doing it full-time. She said while it has been an exciting time to be in real estate, it has also been overwhelming.
Misty Self, a broker at Tree House Mountain Realty, started in June and has similar feelings.
“I was definitely thrown into it,” Self said with a grin. “It’s been a lot to learn very quickly, but I’ve got great co-workers helping me out.”