Twenty-five percent of home buyers reported the pandemic has caused them to move — or speed up their moving timeline, according to a survey conducted by Redfin
Three-quarters of home buyers who plan to buy a home within the next 12 months say the pandemic has affected their home buying plans, according to a SURVEY conducted by Redfin. In addition, 25 percent of home buyers reported the pandemic has caused them to move — or speed up their moving timeline.
“Somewhat counter intuitively, the Corona virus driven recession is propping up the housing market,” Redfin Chief Economist Daryl Fair weather said in a statement. “Home buyer demand is surging despite GDP taking a historic nosedive in the second quarter, largely because Americans value the home more than ever and are willing to prioritize housing even as they cut back on other expenses. Additionally, the Fed is using low interest rates to stimulate the economy, which is giving buyers more purchasing power and boosting home sales. But even with low rates, widespread unemployment and financial uncertainty mean not everyone who wants to buy a home is able to.”
A desire to capitalize on low mortgage rates and more time spent at home are both significant factors impacting home buyers’ decision to move. Fifty-five percent of survey respondents who said the pandemic is causing them to move or move sooner said that low mortgage rates were a factor in their decision. Meanwhile, 52 percent said spending more time at home was a factor in their decision and 40 percent said working from home has impacted their desire to move.
At the time Redfin’s survey was sent out — July 19-21 — the average 30-year mortgage interest rate was 2.98 percent, a historical low. In terms of desired home features, most respondents indicated a preference for more space, a desire spurred by the need to stay at home more often. Twenty-one percent of respondents said they want a designated work-from-home space, and the same percentage said they wanted more outdoor space. Furthermore, 10 percent of respondents said they want a bigger home and 7 percent want a designated space for their kids to learn from home.