As a result of the pandemic, many are now considering a move from densely populated cities and regions to the more spacious suburban and rural neighborhoods in the U.S.
According to findings from a recent Harris Poll, approximately one-third of Americans are now considering a move to less-populated areas, signaling a shift that would have a major impact on residential sales and home prices.
A main driver is that buyers and renters are now much more conscious about how many people live nearby, as many have become accustomed to the social distancing measures put in place in March. Now, outdoor space, grass, and convenience to grocery stores have become more important factors in the home buying process.
The shift from many companies to remote working has also contributed to this trend. Remote workers no longer need an apartment in the city to account for a quick commute to their offices; rather, a home in the country would be a logistical option (as long as the internet connectivity is strong of course).
Subsequently, more renters now may also be moving to homeownership. According to a survey from SatisFacts, about 36% of renters do not intend to renew their leases once they expire – citing rent increases and looking to buy a home as reasons why.
This eagerness to leave the city life has also translated to an eagerness for the millennial generation to take steps toward homeownership – a welcome transition to agents who have long dealt with the many hesitations seen with this generation (more on that here).
In fact, a recent survey from LendingTree showed that 53% of the home buyers surveyed are actually more likely to buy a home within the next year due to the pandemic. Out of that group, first-time home buyers and millennials are the most eager to buy.
The same study shows that the top two motivators for them to buy are the record low mortgage rates, and the fact that they have saved money during the pandemic due to reduced spending.
During these times, the industry is continuing to change on an almost daily basis. It is vital for agents to take time to communicate with the lenders they regularly work with once every week or two. Ask those lenders the important questions about what changes, if any, their company has, or plans to institute.
For more up-to-date information on the market and happenings here at Amerifirst, be sure to follow our Facebook page for weekly videos from Brandon Davis. As always, we’re here to help.
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Menton, Jessica. “Get Me out of Here! Americans Flee Crowded Cities amid COVID-19, Consider Permanent Moves.” USA Today, Gannett Satellite Information Network, 1 May 2020, www.usatoday. com/story/money/2020/05/01/coronavirus-americans-flee-cities-suburbs/3045025001/.
“Pandemic Has Made Americans More Eager to Buy, Survey Finds.” Realtor Magazine, 9 June 2020, magazine. realtor/daily-news/2020/06/ 09/pandemic-has-made-americans-more-eager-to-buy-survey-finds.