The National Association of REALTORS® just released their annual Profile of Home Buyers and Sellers. It shows how the pandemic is affecting real estate throughout the country. The report breaks down trends before the pandemic began and since March, when COVID-19 started to have an impact on our lives.
WHERE is the activity?
More people bought and sold homes in cities and suburbs since the pandemic began than before. Fewer people bought and sold in small towns and rural areas.
Out of all homes bought and sold, those located in the suburbs went from 50% of the total before the pandemic to 57% since it began. Before the pandemic, 12% of all homes sold were in city centers and urban centers. Since the pandemic began, 14% of homes sold were in these densely populated areas.
Before March, 23% of all homes bought and sold were in small towns; since the pandemic began, only 16% were in small towns. Sales in rural areas went from 13% of the total to 11%.
It seems that people in rural areas and small towns were more likely to stay put, while those in the cities and suburbs were more restless.
One question I keep hearing is whether the pandemic has changed people’s perceptions of why they should move and what they need in a home. The answer appears to be yes.
People who sold homes before the pandemic gave different reasons for moving than those who sold after it began. Before the pandemic, for example, 13% of sellers said they sold their home because it was too small. Since March, 18% of sellers say they’re selling because their home is too small. Before the pandemic, 4% of sellers said they sold because the upkeep of their home was difficult due to financial or health limitations. Since the pandemic began, that number has risen to 7%. 15% of buyers purchased a multi-generational home since the pandemic began, compared to 11% before.
HOW are people paying for homes?
Before the pandemic, 87% of buyers got a mortgage to finance the purchase of a home; since the pandemic began, 92% are using a mortgage to finance their purchase. Most buyers who get a mortgage are getting fixed-rate mortgages. Nationwide, the median price for a home sold this year before March was $270,000. Since March, the median price has grown to $339,400.
Ready to make your move? Give us a call.
Reach David and Tom at The Principal Team at 720-408-7409.
Source: NAR 2020 Profile of Home Buyers and Sellers
Trends in Metro Denver
Showings in Colorado are up more than 11% compared to this time last year, according to ShowingTime, a servce many agents use to schedule and manage showings. This indicates the market is still strong, despite the seasonal slowdown.
During the last week:
New Listings – 803
Back On Market – 228
Price Increase – 182
Price Decrease – 542
Pending – 1615
Withdrawn – 166
Closed – 1692
Expired – 183
New Listings – 823
Back On Market – 251
Price Increase – 237
Price Decrease – 603
Pending – 1597
Withdrawn – 161
Closed – 1549
Expired – 208
Based on data from REColorado®