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Pandemic Caused Buyers to Seek Multi-Generational Homes, Sellers to Sell Faster
The coronavirus pandemic initiated several shifts in America’s housing market over the past eight months. New research by the National Association of Realtors (NAR) reveals changes in the behaviors of home buyers and sellers were especially notable as buyers’ usual tendencies altered, and the urgency to sell accelerated.
NAR’s 2020 Profile of Home Buyers and Sellers report shows transactions completed after March were more likely to involve a multi-generational home. Multi-generational home purchases accounted for 15% of sales after March, compared to 11% for those who closed before April.
In light of stay-at-home orders, instituted within the early weeks of the pandemic, 14% of buyers who bought after March said their transaction was delayed because of COVID-19. Sellers who closed in April or later were more likely to sell because their home was too small – 18% compared to 13% of those before April.
“The coronavirus without a doubt led home buyers to reassess their housing situations and even reconsider home sizes and destinations,” said NAR’s Jessica Lautz. “Buyers sought housing with more rooms, more square footage and more yard space, as they may have desired a home office or home gym. They also shopped for larger homes because extra space would allow households to better accommodate older adult relatives or young adults that are now living within the residence.”
Other findings of the NAR report include:
-Buyers who purchased after March were more likely to relocate to the suburbs and were more likely to pay more for that home – regardless of its location – paying an average of $339,400 compared to $270,000 for those who purchased before April.
-Those who bought a home during the pandemic are expected to remain there for 10 years. That is compared to 15 years for those who purchased prior to the COVID-19 outbreak.
-Five percent of buyers who purchased after March did so without physically seeing the home in-person, compared to 3% of buyers who purchased before April.
-Those who went to closing after March were less likely to be denied by a lender – 2% compared to 5% for pre-April buyers.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition
