Homebuying 2020: Buyers Intent on Finding a Three-Bedroom, Two-Bath House with a Garage and Remodeled Kitchen

Rhea-AI Summary

Realtor.com®'s HarrisX survey reveals that homebuyers remain focused on key features, like three bedrooms, two bathrooms, and garages, despite COVID-19's impact. The survey of 2,000 prospective buyers shows over one-third are more optimistic about purchasing a home post-COVID. Many benefit from lower mortgage rates, with 75% changing their home search criteria. Notably, 84% prefer move-in-ready homes, rising from 74%. However, there are signs of financial caution, with fewer buyers planning to offer above asking price or large cash deposits.

Positive

• Over one-third of buyers are more optimistic about purchasing a home post-COVID.
• Lower mortgage rates are influencing buyer behavior positively, allowing for larger homes or better neighborhoods.
• 84% of summer buyers seek move-in-ready homes, an increase of 10% from March.

Negative

• 6% fewer home shoppers plan to offer above asking price.
• 6% fewer intend to put down larger earnest money deposits.
• 37% of buyers are concerned about general economic conditions affecting their purchases.

SANTA CLARA, Calif., July 22, 2020 /PRNewswire/ -- At a time when things seem to be changing more rapidly than ever before, a realtor.com^® HarrisX survey of active home shoppers released today shows that homebuyers are largely looking for the same characteristics in a new home, before and after COVID. However, after months of quarantine and economic uncertainty, many are shifting the ways they approach the buying process.

To identify what's changed and what hasn't, realtor.com^® compared the results of its most recent survey conducted in June to a similar survey of prospective buyers in March. Both surveys polled 2,000 people looking to purchase a home within the next 12 months.

"The COVID pandemic has disrupted nearly every aspect of American life. How we live and work has changed dramatically, unemployment went from record lows to historic highs in weeks  and the U.S. economy is in a recession following the longest expansion in history," said realtor.com^® Senior Economist, George Ratiu. "While the health and economic impact has been significant, the U.S. housing market has remained surprisingly resilient, and consumers continue to view home ownership as the foundation of the American Dream. Home buyers remain steadfast in the main attributes they seek--three bedrooms, two bathrooms and a garage. However, the quarantine has made people rethink where and why they want a new home."

Post-COVID Findings
The global pandemic has sent shockwaves through the U.S. economy, but housing has shown resilience and that can be seen in the survey results. According to the data, over one-third of homebuyers are more optimistic about buying a home after COVID. Additionally, despite record high unemployment levels COVID has offered a few silver linings for homebuyers -- nearly two-thirds believe shelter-in-place orders have helped them save money. Additionally, as the Federal Reserve continues to move with caution on historically low interest rates, and bond investors remain concerned about the recovery outlook, many home buyers are seeing lower mortgage rates. Among them, three-quarters say it is impacting their home search, most often helping them look for larger homes, in nicer neighborhoods. Equal shares are using lower mortgage rates to stretch their budget to get into a more expensive home, or pocket the savings by decreasing their monthly mortgage budget. In addition, home shoppers are willing to live farther away from their workplaces to find the right house, with 9 percent of respondents to the summer survey indicating they would be willing to commute over an hour, compared with the 3 percent who chose the same response in the spring.

Spring vs. summer -- three bedrooms, two baths, up-to-date kitchen and garage reign supreme
Price range, number of bedrooms and bathrooms, as well as most desirable home features haven't changed in buyers' minds. In fact, both surveys found that the vast majority of buyers -- 65 percent -- are shopping for homes priced under $350,000. The national median priced home in the U.S. was $342,000 in June. Additionally, garages continued to reign supreme as the most important feature for buyers in both the early spring and summer surveys. A renovated kitchen and large backyard space ranked in the top five features people want in both surveys. Interestingly, despite the stay at home orders, a large backyard ranked fairly consistent in both surveys, only gaining a 1 percent increase from 20 percent in the spring survey to 21 percent in the summer survey.

	Pre-COVID	Post-COVID
Looking for a home under $200,000	42%	38%
Plan to buy in the next 4-6 months	30%	30%
Looking for 3-bedroom home	39%	41%
Looking for 2-bathrooms	49%	49%
Most important feature when buying	Garage	Garage

Post-COVID shoppers are willing to pay more, commute longer and want move-in ready
But the buying process has been impacted by the pandemic, especially buyer timelines, desired condition of the property, as well as how far buyers are willing to go financially. According to the June 2020 survey, 41 percent of buyers said they are looking to buy sooner because of COVID, 44 percent said it had no impact, and 15 percent said they have slowed their purchase timeline. Additionally, 84 percent of summer buyers are looking for a move-in-ready home, up 10 percent from 74 percent in March.

At the same time, the current economic uncertainty is translating into a lower intention to compete financially among home buyers compared to this spring. After COVID, 6 percent fewer home shoppers report planning to put down a larger earnest money deposit, 6 percent fewer plan to offer above asking price, 6 percent fewer plan to offer all cash, 7 percent fewer will forgo a financing contingency, and 3 percent fewer home shoppers plan to put down more than a 20 percent down payment

	Pre-COVID	Post-COVID
Looking for move-in ready home	74%	84%
Put more than 20% down	31%	28%
Put down larger earnest money deposit	25%	19%
Offer above asking price	23%	17%
Offer all cash	23%	17%

Additionally, while 38 percent of shoppers have increased their target price range since starting their home search, 25 percent of shoppers are looking for a lower priced home because they want to have more savings just in case (47 percent), are worried about financial security (37 percent), are concerned over general economic conditions (37 percent) or their income has decreased (26 percent).  

For more information about the realtor.com^®  home buying surveys, please visit here.

About realtor.com^®
Realtor.com^® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.

About HarrisX
HarrisX is a leading opinion research company that specializes in online polling, mixed-mode polling, and data analytics. The company has a thirteen-year history assessing public opinion and behavior in the telecom, media, and technology industries through syndicated and custom research services. HarrisX runs the Mobile Insights and Total Communication Surveys, the largest syndicated consumer insights trackers in the United States for the TMT space, which include over 60,000 monthly respondents; the Telephia (beta) metering application, which captures behavioral data; and HarrisX Overnight Poll, which delivers results of general population and voter surveys within 24 hours, looking at Americans' opinions on society, politics, technology, and the economy. For more information, visit: www.harrisx.com.

Media Contacts: 
Cody Horvat, cody.horvat@move.com
Lexie Holbert, lexie.puckett@move.com

 

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SOURCE realtor.com

FAQ

What are the main features homebuyers are looking for in 2020 according to realtor.com's survey?

Homebuyers are primarily looking for three bedrooms, two bathrooms, a garage, and a remodeled kitchen.

How has COVID-19 affected homebuyer optimism?

Over one-third of homebuyers report feeling more optimistic about buying a home after COVID-19.

What percentage of homebuyers are looking for move-in-ready homes?

84% of summer buyers are looking for move-in-ready homes, up from 74% in March.

How are mortgage rates influencing homebuyers in 2020?

Many buyers are benefiting from lower mortgage rates, allowing them to upgrade their home search criteria.

What financial trends are emerging among homebuyers post-COVID?

Fewer buyers plan to offer above asking price or make larger down payments, reflecting increased financial caution.