Curious how the COVID-19 pandemic has impacted the Houston housing market? The answer may surprise you! Although the pandemic has been challenging for many, the housing market has continued to hold steady in the second half of 2020.

Much of this is due to historically low interest rates across the board, as shown below. These low interest rates appeal to new and existing homebuyers alike. Not only can they get more home for their money but many also now have the option of paying cash down.

Another contributing factor is how much time people are spending at home these days. From remote working to distance learning, homeowners are looking for ways to make their homes more functional. This need was confirmed by the National Association of Homebuilders (NAHB) in a recent press release. “As a result of the rapid changes for work and the economy after the virus-induced recession, homes are serving multiple roles such as school, office and gym. This has directly increased the demand for improvements,” says NAHB Remodelers Chair Tom Ashley.

Homeowners also want to gain more control over their home environment. Building a custom home or remodeling an existing space gives them the flexibility they need, and it’s no surprise the market has seen an increase in both.

A second press release from the NAHB reports, “In another indicator that housing continues to lead the economy forward, sales of newly built, single-family homes in August topped the 1 million mark and reached their highest pace since September 2006. Sales increased 4.8 percent to a seasonally adjusted annual rate of 1.01 million units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The August rate is 43.2 percent higher than the August 2019 pace.”

Despite the demand for remodeling and new construction homes, there are some challenges. There have been material shortages due to shutdowns this spring. This causes longer lead times, which can delay project timelines and increase costs. However, the Morning Star Builders team is doing our best to ensure each and every project runs smoothly.

If you’re considering remodeling or building a custom home, get in touch with our team. We’d be happy to walk you through our process and get you started on creating the home of your dreams.