COVID-19 impacts homebuyer marketplace
The coronavirus (COVID-19) has quickly taken its toll on travel, conventions, retail, athletics, and concerts, among other everyday activities.
Now it’s impacting the homebuyer marketplace too.
According to Lawrence Yun, chief economist of the National Association of Realtors (NAR), fewer consumers are searching in the marketplace and listings are being delayed.
NAR Chief Economist Lawrence Yun.
The NAR’s latest Economy Pulse Flash Survey – conducted March 9-10 – asked NAR realtor members about how the coronavirus outbreak, significant declines in stock market values and mortgage interest rates has impacted home buyer and seller interest and behavior.
About 16% of those responding to the survey said buyer interest has decreased due to coronavirus, with members in California and Washington State citing larger decreases in buyer interest – 21% and 19%, respectively.
“In the latest flash survey, 11% of Realtors indicated a reduction in buyer traffic and 7% are reporting lower seller traffic when asked directly about the coronavirus impact on the market,” Yun said. “Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to homebuying and selling.”
Yun said that the survey results imply, in “the short-term,” that home sales could decrease by as much as 10% due to the coronavirus.
“At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions,” Yun said. “It is too early to assess the likely impact as to whether lower interest rates can overcome the economic and health anxieties.”
In the most recent home sales reports, new single-family home sales jumped 7.9% in January to the highest rate since 2017 but existing-home sales slipped 1.3%.
Not everyone is being impacted by the virus, however. Other flash survey findings included 78% of realtors responding saying that there has been no change in buyer interest due to the coronavirus while 37% said lower mortgage rates are exciting home buyers much more than falling stock market prices.
Nationally, 3% of home listings have been removed from the market following the outbreak of the virus.
Roughly 25% of home sellers are also changing how their home is viewed while the home remains on the market. The changes include stopping open houses, requiring potential buyers to wash their hands or use hand sanitizer, and asking buyers to remove shoes or wear footies.
The percentage of sellers adopting these and other changes climbs to 44% and 34% in Washington State and California, two of the states hardest hit by coronavirus.
Now it’s impacting the homebuyer marketplace too.
According to Lawrence Yun, chief economist of the National Association of Realtors (NAR), fewer consumers are searching in the marketplace and listings are being delayed.
NAR Chief Economist Lawrence Yun.The NAR’s latest Economy Pulse Flash Survey – conducted March 9-10 – asked NAR realtor members about how the coronavirus outbreak, significant declines in stock market values and mortgage interest rates has impacted home buyer and seller interest and behavior.
About 16% of those responding to the survey said buyer interest has decreased due to coronavirus, with members in California and Washington State citing larger decreases in buyer interest – 21% and 19%, respectively.
“In the latest flash survey, 11% of Realtors indicated a reduction in buyer traffic and 7% are reporting lower seller traffic when asked directly about the coronavirus impact on the market,” Yun said. “Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to homebuying and selling.”
Yun said that the survey results imply, in “the short-term,” that home sales could decrease by as much as 10% due to the coronavirus.
“At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions,” Yun said. “It is too early to assess the likely impact as to whether lower interest rates can overcome the economic and health anxieties.”
In the most recent home sales reports, new single-family home sales jumped 7.9% in January to the highest rate since 2017 but existing-home sales slipped 1.3%.
Not everyone is being impacted by the virus, however. Other flash survey findings included 78% of realtors responding saying that there has been no change in buyer interest due to the coronavirus while 37% said lower mortgage rates are exciting home buyers much more than falling stock market prices.
Nationally, 3% of home listings have been removed from the market following the outbreak of the virus.
Roughly 25% of home sellers are also changing how their home is viewed while the home remains on the market. The changes include stopping open houses, requiring potential buyers to wash their hands or use hand sanitizer, and asking buyers to remove shoes or wear footies.
The percentage of sellers adopting these and other changes climbs to 44% and 34% in Washington State and California, two of the states hardest hit by coronavirus.