Recent reports by the National Association of Realtors® and LendingTree show promising trends in homebuyer demand. We’ve distilled some of the findings from these reports into an easy-to-digest infographic. Let’s take a look!
When looking at the year-over-year change in new listings and contracts, April’s steep drop may have caused some agents and investors to feel uncertain. While the decline was expected in the context of the pandemic and the new shelter-in-place requirements, no one wanted to see this negative trend stick around.
Fortunately, May has shown a quick rebound with an upward trend to the highest numbers seen since March 2020. Even more good news for the housing market, the sale to list ratio is holding steady at roughly 96%, which, according to NAR suggests that sellers are not slashing their prices to sell their homes.
When looking at changes in buyer behavior, a LendingTree survey has found that 53% of homebuyers are more likely to buy a home in the next year due to the coronavirus outbreak. Why? Take a look at the most commonly cited reasons below, which include factors such as buyers having more money saved for a downpayment due to reduced spending in quarantine and feeling more motivated to seek larger, more comfortable living spaces.
Additionally, the survey found that buyers of all different age groups are growing accustomed to virtual showings and many would even purchase a home relying solely on a digital walkthrough. In terms of the traditional open house, a separate survey found the majority of those surveyed are ready to attend open houses now and another 20% of home shoppers would feel comfortable attending an open house under the right safety conditions.
What does all of this mean for you as an investor? Buyers are reentering the market, so if you have a finished flip ready to sell, you may not find yourself having trouble tracking down a buyer. On the flip side, if you’re looking to purchase a home, these numbers could suggest that the competition may be high. It may be more important than ever to make full use of all of your resources to help you secure a good deal.
At New Western, our agents continue to work tirelessly to do the heavy lifting and match you with deals in your area that meet your investment criteria. We are continuing to acquire new off-market properties and are meeting with investors, either virtually or from a safe physical distance, to bring you more opportunities.