Page 10 - April 2021 Issue.indd

DOLLARS AND SENSE by Tolbert Rowe

Covid Real Estate Market” of 2020 and 2021

Spring 2021 is upon us and it appears the dream of home-ownership in the homes was practically being given away
that the fears of COVID are waning. United States would evaporate for many with very lax lending requirements
Soon the flowers of spring will breathe fi rst-time buyers. And move up buyers requiring extraordinarily little if any

new life into everyone, and the world refused to allow anyone to come in to money down. Buyers were driven to
will again be alive with hope and “their” home potentially spreading a purchase not so much by achieving the
promise. The dismal wet winter of 2021 deadly disease. dream of home-ownership but more

is behind us and bright sunshine will by speculation of raking in tens, if not
The fear of becoming unemployed
warm the souls of everyone, and peace hundreds of thousands of dollars in
initially put most home buyers on the
will spread throughout the world. How equity.
sidelines. The real estate market came

cool would that be?
to a screeching halt for about a month Single family homes were being built
Regardless of all the anger and hatred in March and April of 2020. But by the so quickly that builders were able to
swirling around our county and the end of May 2020 living and working at increase prices without regard for
world, life still manages to go on. People home became the norm and the real reaching a point where buyers were
get up every day, go out into the world, estate market took off much like the priced out of the market. Demand for
make decisions about work, life and Mars Rover “Perseverance” did. housing in our area was fueled by those
their families and find a way to live with who worked on the Western Shore and

Real Estate sales in June 2020 increased
the consequences of those choices, good found the commute bearable. Driven
21% from the prior month which was
bad or indiff erent. off the Western Shore by higher prices,

the largest monthly increase since
many families drove East until they

Owning your own home is the ultimate 1968. This milestone did not last long

qualified. Caroline County, and much of
American Dream. Calling a house because July 2020 sales increased 25%.
the Mid Shore was a safe and aff ordable
“your” home is something most people Overall sales of existing homes in 2020
landing zone.
consider the best way to create security were the highest in 14 years. The big
for themselves and their families. question now is how will this market It was not just an abundance of new
Home-ownership creates stability and land? Will it be a slow gentle landing like subdivisions that attracted them to our
pride in communities. Pride in owning Perseverance (Percy) did on the surface area, although this was a major driver of
your home is not a feeling you are born of Mars and run on for years, or will high real estate prices. Existing homes
with, it is a feeling that you earn. Covid unknown forces create problems that suddenly saw a spike in their value and
has changed not only how we live but destroy the whole mission? many homeowners took advantage of
also where we choose to live. this newfound equity by selling and
History can, and sometimes does, repeat

The “Covid Real Estate Market” of 2020 itself. Many of us remember the GO- moving on or refinancing and borrowing
additional money to consolidate debt,
and 2021 is quite an anomaly. One would GO years of the early 2000’s when real do home improvements or fund college
have assumed, as most people did at the estate prices increased 20-30% per year. educations at rates that were at that
beginning of this global pandemic, that Prices skyrocketed as money to purchase
point low in comparison to prior years.
2002 to 2008 was a period of “easy”
money. Low credit scores? No problem.
“Your Mortgage Consultant Since 1985”
No money for a down payment?
Purchase or Refinance No Problem? Not enough income
to support repaying the debt? No
Problem. Unstable employment history?
No Problem. Heck, No employment
history? No problem. Why in the world
would any lender in their right mind
115 E Dover St. Ste 3 - Easton, MD lend under these circumstances?
tolbert@baycapitalmortgage.com C. Tolbert Rowe, Simple answer. Wall Street provided
www.baycapitalmortgage.com NMLS Vice President/Lending
182844 the money by selling mortgage-backed
securities that funded these loans.
410-819-3005 / cell 410-310-3520 Mortgage companies readily pushed

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