The pressure to find new homes during the pandemic does not come as a surprise. With mandatory lockdowns, individuals and families are finding themselves behind closed doors more than ever before. Schools and universities are delaying or even cancelling in-person classes. Space is tight, stress is high, and naturally, people are seeking new opportunities to be comfortable in their space.
Following this push, sales of new homes have reached a 13-year high. Naturally, wealthy individuals are the vast majority of current home-buyers, with renters still reeling from the hit. Low-income and middle-class families are struggling more than ever to continue paying their rent. Additionally, protections against eviction and unemployment benefits have been cut and house prices are shooting up.
Coupled with the increase in new home sales, sales on existing homes have remained steady as well. Even purchases of homes that haven’t begun construction have seen a 34% year to year leap. Low interest rates coupled with the pressure of distancing and lockdowns have opened up a new opportunity for lenders to aid buyers in their search.
Mortgage application rates have soared as well, but many lenders relying on manual processes may struggle to keep ahead of the boom in home purchases. Those with lower-quality customer service and in-person operations are already falling behind as customer expectations continue to set the new standards for lending.
Will your business be able to keep up with the rush? Schedule a consultation to find out where your weakest points are and how you can stay afloat.