Low-Interest Rates Have Given The Real Estate Market A Boom

Coronavirus Pandemic has hurt all the economic sectors worldwide, however, it seems to have helped the housing market to prosper!

Realtor Mary Stier of Chestnut Realty said, “Things are selling very fast with multiple offers and I can’t keep up. 

March and April were uncharacteristically slow, most likely due to health concerns as well as the Minnesota quarantine advisory.”

RE/MAX Advantage Plus Realtor Greg Schmidt said, “ There was some hesitation to invite unknown people into their homes. 

To relieve the clients’ worries about possibly spreading the virus, local realtors are implementing extra safety precautions during home showings. 

I ask my buyers to wear masks and use hand sanitizer before entering a listed home and minimizing the number of people to enter a home.”

Earlier people would bring heir kids along but now only decision-makers are coming into the home, agents set up a showing to only come if they and their buyers are healthy. If someone is sick, we set up some kind of virtual showing.

President Matt Fogarty of Belle Plaine’s CornerStone State Bank said, “The federal government is keeping the interest rates low so it’s making it affordable for people to still buy and refinance, I anticipate them staying low until COVID is resolved, or at least figured out. 

I’m not sure what is going to happen after that. It depends on how the rest of the economy reacts.”

The reduction in interest rates encourages buyers to purchase properties quickly resulting in the market experiencing a shortage in inventory due to lack of new construction.

Belle Plaine, a semi-rural placement and because it is basically in the middle between Mankato and Minneapolis is a convenient location that draws interest from the residents of nearby cities. 

So most listed houses are receiving multiple offers, with the most offers going to properties with extra living space.

With people working from home more and more, resulting in people looking to have extra bedrooms or office spaces to work from hence they prefer to move out to more rural areas from city areas that are more densely populated.