What Do Pandemic Era Buyers Want?
HomeLight, a respected real estate referral company, has just published its quarterly report which focuses heavily on the effect of the Covid-19 pandemic on the residential real estate market. The firm conducted a poll of over 2,000 real estate agents to determine what changes in the market are occurring during the pandemic.
According to the report, buyers are becoming more interested in purchasing or renting a property with a home office, due to the ability of many people to work remotely from home. The brokers also reported that new buyers are more interested in less densely populated areas. Other findings include an increased interest by prospective buyers to purchase single family homes and private and generous outdoor spaces.
These priorities are now more important to buyers than a home gym or dual main suites. The average price of a home office, for example, costs $12,000, but about 87% of the cost can be recouped upon a resale.
The top three most important requirements in the survey for new homebuyers was the need for more space (folks are spending more time at home), a preference to buy rather than rent, and a desire to move to the suburbs.
CBS reports (what brokers already know): Virtual showings and 3D tours for buyers have become very common. According to the National Association of Realtors, 35% of home viewings are now done virtually.
In other changes from the past, one broker interviewed is highlighting units with self-contained air systems. The same broker also said that clients are more often prioritizing in-unit laundries.
A recent Harris poll confirms that Americans are becoming more interested in moving out of the city, and into the suburbs. According to the poll, fully one third of Americans are considering moving to the less densely populated suburbs. Harris CEO, John Gerzema stated, “Space now means more than just more square feet … the virus is forcing urbanites to consider social distancing as a lifestyle.”
Interestingly, those aged 18-34 are the cohort most interested in moving to the suburbs. Also, urban residents (43%) were more likely than suburbanites (26%), or rural residents (21%) to browse real estate ads for homes to buy or rent.
Although the move to the suburbs has been under way for a few years, the pandemic has accelerated the trend.
For those who think homebuying is slowing down during the pandemic, numerous studies report the opposite.
CNBC, for example reports, “Home sales were hit hard by the pandemic, but houses are selling at a faster rate compared to the same time last year.” While the pandemic initially had a negative effect on the real estate market, “Pending home sales bounced back for a record gain in May.”