QUINCY (WGEM) — Real estate professionals in Quincy said people purchased more homes for more money in 2020 when compared to previous years.
The pandemic didn’t stop people like Janelle Eaton and her husband Joshua from going out to buy a house.
“We had a family member come look at it just to make sure that we weren’t getting ourselves into something that we didn’t want to be involved in and we got the blessing from our family and ultimately went under contract without even walking in the door,” Janelle said.
Joshua said beyond virtually house hunting, they faced several hardships moving from Colorado to Quincy.
“When you’re working with an agent, you might be number 15 in the queue, so getting responses and getting documents was a little difficult,” he said.
Farlow Real Estate Experts managing broker Jeremy Farlow said it took longer to sell houses last year compared to 2019.
“That’s due to the couple of months of shutdown that we had,” he said.
But Farlow said even with the delays, he saw more homes sell for more money.
“The biggest reason why is I believe because the interest rates dropped so much last year,” he said.
Farlow said 2019 interest rates were at 4.51 percent while in 2020 they dropped to 2.67 percent, leading to an increase in buying power according to Freddie Mac 30-year mortgage rates.
“People generally buy a monthly payment instead of a house and so they’re going to be able to buy a much more expensive home than what they would’ve been able to afford,” he said.
“The low interest rates really just let us stretch the budget a little more and still be comfortable and that was really really nice,” Janelle said.
Farlow said renters can also benefit from the low interest rates.
He said people living in Quincy for the next three years should consider transitioning from being renters to home buyers to take advantage of the low interest rates.