New Home Sales Haven’t Slowed During the Pandemic

In many ways, the housing market has become bifurcated during the pandemic. While high-end home sales have slowed, new home sales haven’t been impacted by the pandemic. Housing developer Baldwin & Sons has continued to see strong sales in its new developments. In addition, home pricing has increased at these properties without hampering sales activity.

“When the Coronavirus initially began affecting California, we weren’t sure how it would impact our business,” Melissa Hazlett, VP of sales and marketing for Baldwin & Sons, tells GlobeSt.com. “We recognize that as a homebuilding company we were fortunate to have been deemed an essential business from the start and that both our construction and sales efforts could continue, albeit with precautions in place to keep workers and customers safe. We quickly overhauled our sales process, taking a lot of the elements online, and it’s worked wonderfully. A lot of our communities continue to sell out and we’ve had positive feedback from many of the buyers who went through the sales process with us during this unique time. We have seen pricing go up however that hasn’t produced any effects such as a slowdown in sales, adjustments to loan terms or changes in the escrow process.”

The low interest rates have been essential to driving sales activity. Now, rates are dropping again, and the developer is predicting a new surge in sales. “Throughout the duration of the coronavirus, we have seen exceptionally low interest rates,” Hazlett says. “These record low rates have undoubtedly attracted buyers, and our communities in San Diego and Orange Counties have experienced strong sales volume over the past two quarters,” says . Last week rates dropped again, as reported by Freddie Mac in an October 1 report, with the average 30-year fixed-rate mortgage reaching 2.88 percent. To compare, these rates were 3.65 percent a year ago.”

In addition to interest, rates, buyers are also seeking flexible floor plans that are more conducive to the work-from-home and distancing learning models that companies and schools have adopted during the pandemic. “We are finding that our floor plans that feature flexible spaces are really attractive to buyers today. For example, homes with rooms that can be utilized as home offices or that have places which can easily be made into functional at-home learning spaces for children are understandably in demand with buyers,” says Hazlett. “Additionally, our luxury communities such as Bella Sitia in Otay Ranch and The Oaks at Portola Hills feature wonderful indoor-outdoor spaces which our buyers are drawn to. With so much more of life now taking place at home, it’s not surprising that these types of features are attracting buyers today.”

Hazlett doesn’t expect this trend to reverse. Looking ahead, she expects healthy sales activity. “Our outlook is very positive,” she explains. “We see no indications that sales will slow down. Especially now with COVID-19, families are looking for something positive. Purchasing a home is still the American Dream and it brings nothing but pure joy to our families. We are honored every time a buyer closes escrow that they chose to live in Otay Ranch or The Oaks.”