Vaccine Could Boost Listings Ahead of Home Shopping Season

Rhea-AI Summary

The COVID-19 vaccine may significantly impact the real estate market, with a Zillow survey revealing that 70% of homeowners are now comfortable moving post-vaccination, up from 52%. This change translates to over 14 million homes where owners may be more willing to sell. Additionally, 78% of those homeowners expect to be more likely to move due to the vaccine. Zillow predicts approximately 7 million home sales in 2021, a 25% increase compared to 2020. The demand for homes remains high as millennial buyers enter the market, driven by changing housing preferences during the pandemic.

Positive

• 70% of homeowners feel comfortable moving after vaccine distribution, up from 52%.
• Zillow predicts 7 million home sales in 2021, a 25% increase from 2020.
• 78% of homeowners say the vaccine makes them more likely to sell.

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• None.

SEATTLE, Feb. 23, 2021 /PRNewswire/ -- The COVID-19 vaccine is likely to add more buyers and sellers to an already red hot real estate market.

A new survey¹ from Zillow finds a large majority (70%) of homeowners say they would be comfortable moving to a new home after widespread COVID-19 vaccine distribution, a meaningful bump from the 52% who currently feel that way. That amounts to homeowners in more than 14 million homes feeling newly comfortable moving after widespread vaccination.²

Among homeowners who said the vaccine would impact their decision to sell, nearly four-in-five (78%) said they expect it will make them more likely to move.

This research follows Zillow's prediction of 7 million home sales this year, nearly 25% more than in 2020, as more sellers regain the confidence to return to the market at a time of incredible demand. Last fall, Zillow research found financial anxiety and ongoing uncertainty was keeping some would-be sellers on the sidelines, depressing inventory. Now survey results find measures of both life and financial uncertainty have decreased: 25% of homeowners reported their life or financial situation was too uncertain this January, compared to 29% who said the same in November. 

Sellers drawn in by more certainty, the vaccine and strong sale prices could help feed a ravenous demand for homes this spring home shopping season. 2020 brought a dramatic acceleration in the speed of the market, with buyers snapping up homes just days after they were listed for sale. That velocity, enabled by the rapid adoption of real estate technology, allowed existing home sales to rise 5.6% while overall inventory fell.

"We expect that the vaccine rollout will likely boost inventory, as sellers become increasingly willing to move despite Covid-19 -- resulting in greater numbers of new listings beginning this spring," says Chris Glynn, principal economist at Zillow. "That injection of inventory could give buyers more options and breathing room in a competitive market. The vaccine, however, will also likely add to already-strong demand, given that most sellers will become buyers as they trade in for a home that better suits their new needs. " 

That already-strong demand is being driven by both demographic and pandemic-led factors. Millennials -- often considered the largest generational group in the country -- are aging into their peak home-buying years. The generation fueling the Zillow surfing trend is now hitting their mid-30s, the median age of a first-time home buyer.

The Great Reshuffling continues to contribute to unrelenting demand in the for-sale market, as the pandemic has prompted people to rethink how and where they want to live. The freedom to telework has opened up new, affordable housing options all over the country. Real estate tech tools, such as next-generation 3D home virtual tours with interactive floor plans, are enabling shoppers to remotely explore all the possibilities a move could bring. 

About Zillow Group:

Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life's next chapter.

As the most-visited real estate website in the U.S., Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers® buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans™, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions. 

Zillow Group's affiliates and subsidiaries include Zillow®, Zillow Offers®, Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing Services™, Zillow Homes, Inc., Trulia®, Out East®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).  

¹ Zillow Group Population Science collected a nationally representative sample of more than 1,000 homeowners (household decision makers that own their home and did not move in the past year). From January 26^th to January 29^th, 2021, the survey asked homeowners questions about how the pandemic and widespread distribution of the COVID-19 vaccine would impact their plans to move. 

² Applied to the American Community Survey's count of all owner-occupied housing units, 14M represents the gap between those that currently feel comfortable moving and those that expect to after widespread distribution of the COVID-19 vaccine. 

 

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SOURCE Zillow

FAQ

How will the COVID-19 vaccine affect the real estate market in 2021?

The vaccine is expected to boost the number of home listings as 70% of homeowners feel more comfortable moving, suggesting increased market activity.

What does Zillow predict for home sales in 2021?

Zillow forecasts approximately 7 million home sales in 2021, which represents a 25% increase compared to the previous year.

What percentage of homeowners believe the vaccine will influence their decision to sell?

A significant 78% of homeowners stated that the vaccine would make them more likely to move.

How many homeowners feel comfortable moving after widespread vaccination?

70% of homeowners indicated they would be comfortable moving after widespread COVID-19 vaccination.

What trends are influencing the demand for homes according to Zillow?

The demand is driven by millennials entering peak home-buying years and shifting preferences due to the pandemic.