Real Estate Tips

Home Buyers Before and During Covid-19

Every year, the National Association of Realtors performs a survey of recent home buyers and sellers. The 2020 report is compiled of data from buyers and sellers who purchased or sold a home between July 2019 to June 2020. This year’s report gives us unique insight into how the Coronavirus pandemic has affected the homebuying process.

Home Buyer Demographics

31% of all home buyers were first-time buyers, down only slightly from 33% last year. 64% of first time home buyers cited desire to own their own home as the primary reason for purchasing a home.

Overall, the typical home buyer this year was 47 years old and married with a household income of $96,500.

Purchased Homes Data

Most homes were purchased for 99% of asking price at a median of $272,500- typically a 1,900 square foot home built in 1993 with 3 bedrooms and 2 bathrooms. 85% of buyers purchased a previously owned home, most often in search of better value. On the other hand, new home buyers were most often looking to avoid renovations and problems with plumbing or electricity. 12% of home purchases were multigenerational homes to accommodate aging parents or older children moving back home. Heating and cooling costs were an important factor across the board.

Home buyers moved a median of only 15 miles from their previous home and expect to stay in their new home for a median of 15 years.

Searching for a Home

A record-breaking 97% of home-buyers used the internet at some point in their search, but 88% of buyers ultimately purchased their home through an agent- 91% of whom found their agent a useful information source and said they would use their agent again and recommend their agent to others. Buyers reported that the most difficult task in the buying process was finding the perfect home, typically searching for 8 weeks and looking at a median of 9 homes. On average, over half of the homes a buyer looked at were viewed online only.

Financing a Home

Record low interest rates allowed 87% of buyers to finance their own home, typically financing 88%. However, 11% of buyers stated that saving for the downpayment was the hardest part of the buying process, with the biggest hurdle being student loan debt. Still, 58% of buyers were able to source their downpayment from their savings, and 83% of buyers view their home purchase as a good investment.

Before and During COVID-19

Because this report consists of data gathered between July 2019 and June 2020, it allows us to compare purchases made during and after the onset of COVID-19 to purchases made before.

Not surprisingly, homes purchased during the pandemic were more likely to be multigenerational homes and more likely to be located in a suburban location and/or in a small town. Unique buying motivations mean post-March buyers expect to spend 5 less years in their new home than pre-March buyers.

Unfortunately, COVID-19 halted the buying process for 1 in 6 buyers. Compared to pre-pandemic buyers, buyers who purchased after March spent less time looking on their own before hiring an agent.

Supply shortages following the onset of the pandemic drove the typical home price up to $339,400, with 23% of homes purchased after March costing at least $500,000. As such, buyers who made purchases during this time were more likely to have higher household incomes.

Are you looking to buy a home right now? Even in the midst of a global pandemic, we have you covered. Blue Ridge Properties’ agents have the digital experience, industry expertise, and hyper-local knowledge necessary to help you find the right home. Browse our agents here: https://brphomes.com/agent or contact us online, by phone (423-247-4181), or in person at one of our offices.