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.