{"id":16910,"date":"2020-12-16T11:31:54","date_gmt":"2020-12-16T17:31:54","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=16910"},"modified":"2020-12-16T11:31:54","modified_gmt":"2020-12-16T17:31:54","slug":"nar-report-comparing-changes-in-home-buying-during-covid-19","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/big-data\/nar-report-comparing-changes-in-home-buying-during-covid-19\/","title":{"rendered":"NAR Report: Comparing changes in home buying during COVID-19"},"content":{"rendered":"<p>The COVID-19 pandemic has changed pretty much everything for everyone in the U.S., and <a href=\"https:\/\/theamericangenius.com\/housing\/big-data\/what-the-nar-report-says-about-characteristics-of-homebuyers-and-sellers\/\">home buying<\/a> is no exception.<\/p>\n<p>To see how, the National Association of Realtors added a section to their \u201c<a href=\"https:\/\/store.realtor.org\/product\/guide\/2020-nar-profile-home-buyers-and-sellers-download\">2020 Profile of Home Buyers and Sellers<\/a>\u201d that looks at how the data is shifting. NAR pulled out data on primary home buyers who closed from July, 2019, through March, 2020, compared with those who closed from April through June, 2020. That means the pandemic dataset is based on just 3 months \u2013 likely not long enough to call something a major trend but long enough to get an idea of where things are likely to go.<\/p>\n<p>The big picture:<\/p>\n<ul>\n<li>Pandemic-era buyers are likely to make more money and pay more for homes. The biggest jump was in the $500,000+ price range.<\/li>\n<li>More people want to live with more people. They\u2019re choosing properties suitable for multiple generations, and more unmarried couples as well as unrelated people are buying together.<\/li>\n<li>Buyers are spending less time searching before talking to an agent.<\/li>\n<li>Having trust in and personal connections with an agent are becoming more important for buyers when choosing someone to work with.<\/li>\n<li>14% of buyers said COVID-19 created some kind of roadblock that impacted the transaction.<\/li>\n<\/ul>\n<p>To dive a little deeper, here are some of the main takeaways based on the biggest swings in data.<\/p>\n<p><strong>Who\u2019s buying what?<\/strong><\/p>\n<p>Demographics and household makeup are reshaping demand. Although married couples remain at around 60% of buyers, the next largest group \u2013 families with children under 18 \u2013 is up by 2 points, as are unmarried couples. Single women, previously the third largest group, have dropped 4 points.<\/p>\n<p>But the big story here is increasing demand for multi-generation homes. Buyers who say they wanted room for taking care of or just spending time with older parents and relatives are up a combined 7 points. (Hello, sandwich generation!)<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-16911\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart-300x246.png\" alt=\"Multi-Generational Home Purchased Chart (before and after COVID-19)\" width=\"472\" height=\"387\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart-300x246.png 300w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart-768x629.png 768w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart-366x300.png 366w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart-600x491.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MultiGenerationalBarChart.png 890w\" sizes=\"(max-width: 472px) 100vw, 472px\" \/><\/p>\n<p>Unmarried couples and roommates who want to share costs are also trending upwards.<\/p>\n<p>FYI to young adults who plan to move back home: Your parents might not buy a house with room for you and your collection of soccer trophies. \u201cChildren\/relatives over 18 moving back into the house\u201d as a reason for buying dropped 7 points.<\/p>\n<p>Unsurprisingly, people who make more money are buying more houses; people who make less are buying fewer houses \u2013 undoubtedly related to the pandemic\u2019s economic impact. Household median income for pre-pandemic buyers was $94,400 compared to $110,800 from April on.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-16912\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid-300x171.png\" alt=\"Household Income of Home Buyers before and during COVID-19\" width=\"468\" height=\"267\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid-300x171.png 300w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid-768x437.png 768w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid-400x227.png 400w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid-600x341.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/HouseholdIncomeBeforeCovid.png 802w\" sizes=\"(max-width: 468px) 100vw, 468px\" \/><\/p>\n<p>More people are taking the opportunity to move from rentals into buying a home \u2013 up a whopping 9 points.<\/p>\n<p>People who identify as White\/Caucasian and those born in the U.S. remain the vast majority of buyers; however, Asian\/Pacific Islanders are up by 4 points and Hispanic\/Latino people are up by 2.<\/p>\n<p><strong>Where are they buying?<\/strong><\/p>\n<p>Suburbs are hot. Urban areas are still in. Small towns are out.<\/p>\n<p>Specifically, suburbs\/subdivisions are up 7 points. Urban areas\/central cities are up 2. Small towns are down 7, with a 2-point drop off for rural areas.<\/p>\n<p>We\u2019ve been reading for months now that pandemic-era buyers, especially those who can work remotely, <a href=\"https:\/\/www.washingtonpost.com\/realestate\/choosing-the-suburbs-over-city-life-during-the-pandemic\/2020\/10\/15\/01c94c5e-e716-11ea-97e0-94d2e46e759b_story.html\">are fleeing cities for suburbs and small, rural towns<\/a> in the quest for more space, lower costs, and fewer people. NAR\u2019s numbers bear that out for suburbs, but not for small towns and rural areas.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-16913\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart-300x200.png\" alt=\"Location of Home Purchased, before and during COVID-19\" width=\"521\" height=\"347\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart-300x200.png 300w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart-768x512.png 768w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart-400x267.png 400w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart-600x400.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/LocationHomePurchaseChart.png 861w\" sizes=\"(max-width: 521px) 100vw, 521px\" \/><\/p>\n<p><strong>How much are they paying?<\/strong><\/p>\n<p>Median price is up significantly, going from $270,000 to $339,400. The pandemic doesn\u2019t appear to have slowed sales, especially in hot markets with tight inventory. People are paying more to get what they want, but prices are rising as demand exceeds inventory.<\/p>\n<p>Prices start to move up in the $350,000 to $399,999 range, with a 3 point jump. The $400,000 to $499,999 range is up by 4 points. It\u2019s the $500,000+ homes that are really taking off, with a 9 point jump to 23% of buyers. High demand and tight inventory were already driving prices upward, but the pandemic is pushing them even higher, as the median price went from $270,000 to $339,400.<\/p>\n<p>Homes from the $199,999 to less than $100,000 range all saw a downturn.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16914\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID-300x133.png\" alt=\"Price of Home Purchased before and during COVID-19\" width=\"503\" height=\"223\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID-300x133.png 300w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID-768x340.png 768w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID-400x177.png 400w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID-600x265.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/PriceofHomePurchasedBeforeCOVID.png 789w\" sizes=\"(max-width: 503px) 100vw, 503px\" \/><\/p>\n<p><strong>What\u2019s the search like?<\/strong><\/p>\n<p>Buyers are spending less time in the home buying process searching before getting an agent \u2013 now 2 weeks instead of 3 \u2013 and typically seeing 8 rather than 9 homes. Most people are still seeing 5 to 10 homes.<\/p>\n<p><strong>What are buyers looking for in an agent?<\/strong><\/p>\n<p>Trust and personal connections are becoming more important to buyers. The category of \u201cAgent is friend or family member\u201d is up 5 points; \u201cAgent is honest and trustworthy\u201d climbed by 3.<br \/>\nExperience and reputation were rated as slightly less important for home buying.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16915\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/FactorChoosingAgentCovid-266x300.png\" alt=\"Most Important Factors when choosing an agent before and during COVID-19\" width=\"360\" height=\"406\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/FactorChoosingAgentCovid-266x300.png 266w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/FactorChoosingAgentCovid-600x678.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/FactorChoosingAgentCovid.png 657w\" sizes=\"(max-width: 360px) 100vw, 360px\" \/><\/p>\n<p><strong>What\u2019s up with lending?<\/strong><\/p>\n<p>Fixed-rate mortgages continue to reign supreme, but more people are holding on to their cash. Buyers who had no mortgage dropped 5 points. The number of people going for conventional loans headed up by 4 points. There were slight upticks in fixed-adjustable or adjustable rates.<\/p>\n<p>Median percentage financed stayed the same at 88% throughout the 12 months, with the largest group of 80% to 89% financed seeing a slight drop. Most movement was in the 70% to 79% range, which went up by 5. So buyers are putting down more cash, but fewer people are putting down all cash.<\/p>\n<p>Getting a mortgage appears to be getting harder, but the numbers aren\u2019t clear on why. Looking at reasons for denials, low credit scores dropped 18 points and unverifiable income dropped by 8 points. But the category of \u201cother\u201d climbed 21 points, leading to the question of whether some new, pandemic-related reasons have popped up.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16916\" src=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-300x126.png\" alt=\"Mortgage Application had been rejected from mortgage lender, before and during COVID-19\" width=\"471\" height=\"198\" srcset=\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-300x126.png 300w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-1024x429.png 1024w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-768x321.png 768w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-400x167.png 400w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart-600x251.png 600w, https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/MortgageApplicationChart.png 1087w\" sizes=\"(max-width: 471px) 100vw, 471px\" \/><\/p>\n<p>It will be interesting to see whether these nascent trends continue into 2021, but it will always be important for real estate pros to keep on top of trends. Knowing where things are going can help agents refine marketing strategies, identify potential niches and, most importantly, make sure they\u2019re giving clients the best possible service.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(REAL ESTATE BIG DATA) COVID-19 is changing the landscaping of home buying in the U.S. NAR\u2019s new report shows some signs of where it\u2019s headed.<\/p>\n","protected":false},"author":337832,"featured_media":16917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[91],"tags":[2054,571,2108,1234],"class_list":["post-16910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-big-data","tag-big-data","tag-home-buying","tag-nar-report","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/12\/WelcomeSignDoor.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337832"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=16910"}],"version-history":[{"count":2,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16910\/revisions"}],"predecessor-version":[{"id":16931,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/16910\/revisions\/16931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/16917"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=16910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=16910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=16910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}