"Somewhat counterintuitively, the coronavirus-driven recession is propping up the housing market," said Redfin chief economist
Sixteen percent of respondents said the pandemic has caused them to want to move and 15% said it has caused them to move sooner than originally planned. Six percent of respondents chose both options, which results in a total of 25% of homebuyers who said the pandemic has caused them to want to move and/or speed up their moving timeline.
When it comes to home preferences, the pandemic's most common impact on homebuyers is a desire for more space, with 21% of respondents saying they want a designated area to work from home and the same share wanting more outdoor space. Additionally, 10% of respondents said they now want a bigger home, and 7% want a designated space for their children to learn from home.
Low mortgage rates and spending more time at home are driving forces for people who are moving for pandemic-related reasons. Of the people who said the pandemic is causing them to move (or move sooner), 55% said low mortgage rates are a factor in their changed plans, the most common response. Fifty-two percent said spending more time at home is a factor, and 40% said working from home is contributing to their desire to move. The average 30-year mortgage-interest rate was 2.98% when the survey was fielded, the lowest in history up until that time.
The large share of Americans looking to move as a result of the pandemic is one reason the housing market is booming despite high unemployment and an uncertain economy. Recent indicators of homebuying demand reflect the competitive landscape: Pending sales were up 12% year over year in the four weeks ending
"Mortgage rates are up there on the list of what's driving people to buy," said San Francisco Redfin agent
The people who are delaying plans to move are most impacted by economics, with 45% of those respondents citing financial concerns as a factor in their changed plans.
"When the pandemic first hit, a few buyers canceled contracts due to economic uncertainty and concerns about potential layoffs," said Phoenix Redfin agent
For the full report and methodology, visit https://www.redfin.com/blog/coronavirus-pandemic-drives-homebuyers-to-move.
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