Boston Real Estate News: Sellers Survey Report
An excerpt from Zillow’s seller survey:
With the rollout of vaccines against COVID-19, 70% of homeowners in a recent Zillow survey say they would feel mostly or completely comfortable moving to a new home when vaccines are widely distributed — and 78% of homeowners who say widespread vaccine distribution would impact their decision to move say such distribution would makes them more likely to move.
“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.”
Zillow research shows that 63% of sellers are also buyers. And, as buyers, they have specific reasons for selling. A recent Zillow survey shows that homeowners who are thinking of selling in the next three years have a variety of reasons for doing so.
Additionally, 26% want to live closer to family, 24% wanted out from being responsible for yard work, 14% say their family or household is getting larger and 13% say they can no longer afford their home.
Nearly 40% of homeowners who are considering selling within three years (39%) say they think they’ll get a better price if they wait. They’re not necessarily wrong — although waiting comes with tradeoffs, according to Zillow economist Jeff Tucker.
“Potential sellers are likely correct that home prices have yet to reach their peak,’’ Tucker said, “but in the long run prices tend to rise, so there’s no clear ‘right time’ to sell.”
The catch, he said, is that waiting to sell may raise the cost of trading up to their next home if mortgage interest rates rise.
Buyer interest declined by 90%? I think what they meant is that 90% of buyers don’t want to risk their life to view real estate in person – they are still interested in the market as viewed from their couch.
NAR conducted a survey from April 5-6, 2020 – asked real estate members questions about how the coronavirus outbreak has impacted the residential real estate markets. Several highlights of the member survey include:
Due to the outbreak, 90% of members said buyer interest declined and 80% of members cited a decline in the number of homes on the market.
Home prices look to hold steady after rising robustly before the pandemic. Almost three in four members – 72% – said sellers have not reduced prices to attract buyers. Conversely, more than six in 10 members – 63% – said buyers are expecting a decline in home prices as buyers sense less competition in the current environment.
Technology plays a vital role as the real estate industry adapts to the new reality of managing deals virtually with social distancing directives in place. Members said the most common technology tools used to interact with clients are e-signatures, social media, messaging apps and virtual tours.
Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Nearly half of property managers – 46% – reported being able to accommodate tenants who cannot pay rent and more than a quarter of individual landlords – 27% – said the same. The recently enacted Coronavirus Aid, Relief, and Economic Security Act includes provisions on eviction prevention and small business loans and grants that are critical to keeping the rental market steady.
View NAR’s Economic Pulse Flash Survey full report here: