Low Interest Rate Drives Strong Real Estate Market
Scott and Allison Dunn had three showings of their house within three days of listing it with a real estate broker. The second person who looked at it signed a contract.
That quick offer is typical of the strong real estate market, said brokers Steve Kehrer of Strano and Associates of New Baden and Cissy Patton of C & C Real Estate in Nashville.
Record low interest rates are prompting a high demand in a market with fewer listings – likely due to COVID concerns.
The Dunns, who are in the process of selling their house in Okawville, are typical of the many of the people buying and selling in Okawville. They aren’t moving from the area, but selling to buy a house that better suits their present needs.
The couple’s small houses on Sparta St. was ideal for the former Allison Kuhlengel when she bought it five years ago. But a lot changed in five years that affected housing needs. Kuhlengel met and married Scott, they had a daughter, Lilly, and are expecting another child in a few weeks.
They jumped at the opportunity to buy her parents farm home in the Covington area when they planned to move into Okawville. Larry and Cindy Kuhlengel are in the process of buying a house from someone who already bought a different house in town.
The record low interest rates below three percent are the lowest Steve Kehrer has seen in his 17 years selling real estate.
“These low rates are appealing to buyers,” Kehrer said.
The supply of houses is not keeping up with demand, according to the broker. While Strano and Associates typically has 20-25 listings, it now has only 11, and 7 are those are under contract, said Kehrer’s partner, his son Jay.
Read the full story in this week’s issue.