Hamilton Herald Masthead


Front Page - Friday, September 25, 2020

Home purchasing plans largely unchanged in 2020

The spread of the coronavirus upended almost everything in 2020, with lockdowns and other public health interventions disrupting daily life. But did the pandemic affect potential homebuyers this year?

A recent National Association of Home Builders housing trends online survey shows the spread of COVID-19 did not change home purchasing plans for many Americans.

According to the report, the share of Americans who are considering the purchase of a home in the next 12 months was 11% in the second quarter of 2020, which was essentially flat when compared to the same quarter in 2019 (12%).

The survey finding indicates that the overall propensity among Americans who want to buy a home has not been impacted by the pandemic.

However, generational differences among potential homebuyers was stark. In the second quarter of 2020, millennials (adults 24-39 years old) were the generation most likely to want to buy a home (19%), a sentiment slightly higher than a year earlier (17%).

In contrast, Boomers (adults 56-74 years old) were the least likely to plan for a home purchase (5%).

Home purchasing plans by region were similar. The share of survey respondents who were prospective homebuyers was unchanged in the Northeast (10%) and South (12%), essentially flat in the West (13%) and slightly lower in the Midwest (down from 11% to 9%) from the previous year.

One of the challenges homebuyers are encountering this year, in addition to affordability, is a delay in their home search due to the rising number of multiple offers on the same property. The survey found that nearly a third (30%) of active buyers reported getting outbid by another buyer in the second quarter of 2020, which was significantly higher than the comparable 18% share a year earlier.

For house hunters who have been actively searching for a home for at least three months, more than half (51%) say they will continue looking for the “right” home in the same preferred location, 37% will expand their search area and less than a quarter (21%) are willing to accept a smaller or older home.

Are you ready to build or buy your new home in 2020? Find contact information for qualified homebuilders and realtors at HBAGC.net.