COVID-19 may have halted real estate sales, but once America isn’t sheltering in place any longer, home sales should go on. A May survey from the National Association of Realtors® provides insight into the effect of the coronavirus pandemic on the real estate market.
The Economic Pulse Flash Survey surveyed over 90,000 members with a response rate of almost 2,300. The highlights are encouraging. Over 77% of potential home sellers will list their home once COVID-19 restrictions are released.
Home Buying/Home Selling Should Boom After COVID
Not only are home sellers planning on listing their homes, home buyers are getting ready to buy. Record-low mortgage rates stand posed to get people into new homes that offer stable payments. NAR also found:
- Home buyers are looking at suburban communities rather than urban neighborhoods because of COVID-19.
- Home buyers are shifting priorities of home features. The COVID-19 pandemic has made buyers look for homes with space for family and home offices. They also want yard space to exercise and to grow a garden.
- Home sellers aren’t reducing listing prices to attract buyers in the COVID-19 aftermath.
Home Buying Delayed
NAR also found that most home buyers were simply delaying the process of home buying or relying on virtual communication to continue the process. Interestingly, 18% of Realtors reported that there was no change in the process.
These Realtors continue to meet with clients and show properties in person. But 30%o of residential home sellers were not allowing in-person showings. Another 36% were relying on virtual showings, while most were asking home buyers, appraisers and agents to use sanitation procedures to reduce the spread of the virus. Open houses are on pause.
We don’t know what the new normal will look like in a few months. Real estate might be experiencing a slow period right now. But there does seem to be hope that it will recover.