Demand for housing continues to increase despite state and local restrictions for COVID-19. What has changed that has made people more likely to buy a home than before this virus came along? A combination of the following has created more opportunities to buy a home, contributing to a substantial new wave of potential home buyers. 

• Record-low mortgage interest rates
• Remote work opportunities
• Increased interest in a second home

Low-interest rates

The national average for both 30-year and 15-year fixed-rate mortgages has plummeted below 3%. Over the past few years, average rates have stayed around 3-5%. The rates continue to trend downward and reach record lows each month. 

A lower interest rate means more affordable mortgage payments. Affordable mortgage payments open the door for new homebuyers who couldn't afford the previous rates. As interest rates continue to drop, rental prices increase, encouraging more home buyers to search for an affordable starter home. Not only are individuals more likely to buy a larger home with low-interest rates, but it also creates a whole new market of potential homebuyers. 

Remote Work 

Many employers were forced to transition to remote work when the COVID-19 pandemic struck. Many states placed strict regulations on gathering unless your work was deemed "essential." Therefore, the new "work from home" trend, which was once seen as an inconvenience, has become popular among businesses across many different industries. They have noticed the financial benefits of working from home and acknowledged how many of their employees prefer the convenience of telecommuting. But what does this have to do with real estate? 

No commute

Telecommuting has its own benefits and challenges, different from commuting to work every day. The main advantage: no commute! The ability to work from home saves time and money. The obvious benefit is that you don't have to pay for gas or public transportation to get from home to work. Fewer travel expenses mean more money to spend on a house! If you're renting, you can repurpose that money for a bigger place. If you already own a home, maybe it's time for a better office? Regardless, buyers have decided that working from home is a great reason to buy a better home. 

Need more space and an office

Also, telecommuters no longer have to spend close to two hours a day driving or riding to and from the workplace. Spending more time at home has made homeowners realize that they want more space and more functional office space. Many workers have chosen to work from their kitchen table or their laptop on the couch while waiting out the pandemic. Since employers are starting to have their employees work from home permanently, homeowners are looking for homes with more space to separate their living areas from their office space. Homes with functional office spaces and separate living areas are at a premium and highly sought after. 

Priced-out renters

Thousands of people rent temporary apartments and condos because of the inflated housing prices in their area. For example, houses in California can get too pricey, especially if you work near some of the popular tech companies. As previously mentioned, rental prices are continuing to increase with cost-of-living. In turn, mortgage rates are decreasing, making it more feasible for renters to look for a permanent residence. 

However, in some places, it's still not reasonable for low-to-middle income families to buy a home. The new remote work trend allows individuals to move into more affordable areas and purchase a home, rather than renting a place close to their employer. Essentially, if you can telecommute, you don't have to live near your workplace. Experts predict that renters in high-end areas will move out of the major cities to buy a starter-home if given the opportunity to work from home long-term. 

More Interest in a second home

There's currently an exciting trend of homeowners buying a second home. This may be a result of low-interest rates. However, the work from home trend may contribute as well. Some homeowners work from home, and others have to stay home with their kids for online learning. Either way, they're spending 24/7 at home and want a break from everyday life. This has resulted in an increased desire for a second home. Most homeowners prefer their second home to be within a few hours' drive from their current residence. Some homeowners use the second home as a vacation home, while others just need a weekend getaway.