The COVID-19 effect on Lake Wallenpaupack real estate
In year two of the COVID-19 pandemic, the housing market has seen its biggest boom since just before the economy crashed in 2008. Back then, mortgage lenders were giving loans out to just about anyone who would take them, and many people ended up purchasing (and later foreclosing on) homes they couldn’t actually afford.
In fact, according to The Wall Street Journal: “Between 2006 and 2014, about 9.3 million households went through foreclosure, gave up their home to a lender or sold in a distressed sale, according to a 2015 estimate from the National Association of Realtors.”
Why is the housing market so crazy right now?
In the wake of COVID-19, mortgage rates have fallen, and buyers – quarantined at home and unable to enjoy the space and amenities of the neighborhoods they once loved – turned to bigger, better real estate as a solution. If all of a sudden you’re homeschooling three kids and both parents are working from home, a three or four-bedroom home with no yard or swimming pool no longer feels as spacious as it once did.
Plus, the massive rise in telecommuting means that formerly office-bound employees no longer need to drive or commute via public transportation into work every day, freeing them up to pursue real estate investments farther out from city centers. “Covid has catalyzed a rethinking of where we live, and why we live there, and where we work, and how we work,” said Rich Barton, chief executive of online real-estate company Zillow Group Inc.
And record-low interest rates (around 3%) made buying a home during the pandemic even more attractive. “Rising COVID-19 cases across the country and the pause on the Johnson & Johnson vaccine introduced fresh uncertainty to the market and placed renewed downward pressure on rates, helping drive them to their lowest level in a month,” said Zillow economist Matthew Speakman.
So what makes this Lake Wallenpaupack real estate boom different from the subprime crisis of 2008?
For starters, today’s stricter lending regulations ensure that buyers can only borrow enough to purchase a home they can actually afford. And, because the inventory of available houses is low and demand to buy them is so high, even if a buyer were no longer able to make payments on their mortgage, they could likely sell the home for a profit in this market – without ever having to enter foreclosure.
So, if you have the down payment and have done your homework, now is still a great time to purchase Lake Wallenpaupack real estate. And with no true end in sight to the global pandemic and its long-tail aftershocks, living on the lake is a dream come true. From endless activities on the water for children and adults alike to enjoy the private, serene settings of Lake Wallenpaupack, a lake house is a fantastic investment in this day and age.
To learn more about Lake Wallenpaupack real estate for sale, contact us today!