NEW YORK. May 21, 2020 (Fox Business) — Real estate is making a “stunning” recovery as demand for housing rises at rapid rates and the coronavirus curve flattens, according to a leading real estate broker. “It’s amazing,” Dolly Lenz Real Estate CEO Dolly Lenz told FOX Business’ Maria Bartiromo on Thursday. “Purchase volume was down just 1 percent over a year ago. Imagine that. Last month it was down 35 percent annually. This month it’s only down 1.5 percent.”
High demand has caused a bidding war to break out amid tight inventory, according to her daughter Jenny Lenz, who is the managing director of Dolly Lenz Real Estate. Housing starts are down 32 percent, she said, and new listings are down 29 percent annually. “Buyers still want to buy,” she said. “Mortgage rates are at an all-time low, hovering around 3.28 percent. And there’s a huge interest from first-time homebuyers clamoring to get on that property ladder.”
At a time when it seems evident that people are fleeing high-tax, big cities for simpler living, Dolly Lenz said people are definitely looking for a lifestyle change, but not so much trying to escape. Many buyers have been investing in multiple properties, she said, including vacation and city homes.
Coronavirus has also changed many buyers’ wish lists from including greater amenities like gyms and playrooms to now wanting smaller, safer spaces with work from home capabilities, Jenny Lenz said. “Big work from home consideration [is] coming up on everybody’s wish list,” Dolly Lenz added.