Surge of home buyers getting ready to buy in the near future
When stay-at-home orders became widespread in March, it would’ve been safe to assume that the economic shutdown and ensuing uncertainty would cause prospective home buyers to put their plans on hold.
And they did, for a while.
But now, just a few months later, it looks like staying in has caused buyers to be even more ready for a move.
In fact, according to one new survey, 53 percent of home buyers say they are more likely to buy a home in the next year because of the pandemic – compared to 27 percent who said they hadn’t changed their plans and 20 percent who said they’d be less likely to buy.
But why would the coronavirus make home buyers more enthusiastic to buy?
Well, the vast majority said mortgage rates. Rates were already favorable to start the year but are now at record lows. That makes buying more affordable and presents movers with an opportunity to lock in a historically low rate.
Another reason is Americans have been able to save money during lockdown because they’ve been spending less. That means more money set aside for a down payment.
Perhaps the most relatable reason survey respondents gave, though, belongs to the 28 percent who said they were ready to make a move because they’d been stuck in their small space for so long.
My thoughts on surge of home buyers getting ready
As an active loan originator, many of my recent clients have told me that being stuck at home 24-7 (due to shelter-in-place order) have struck their nerves and decided to speed up their homebuying rather than waiting.
Among them, some were able to save more faster and others were living in smaller apartments and eager to get a bigger space.
Whatever the case may be behind home buyers getting ready to buy, one thing was clear to me. They all wanted bigger space and decent sized backyard.
Are you or were you in the market to buy before the shelter-in-place order? If not in the market anymore, what’s holding you up to buy? Let us know in the comments below!
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