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Evolving Trends: Sellers, Home Buyers, and the Housing Market

Since COVID-19 started spreading across the country, it has had a tremendous impact on the housing industry. The characteristics and trends of sellers, buyers, and the houses the sell and buy have evolved this year, according to an annual survey conducted by the National Association of Realtors (NAR).

The survey includes responses from 8,200 buyers and sellers across the country who bought or sold a home between July 2019 and June of 2020. The survey found that 57% of buyers who purchased a home during the pandemic (from March 2020 onward) purchased in a suburban area, whereas 50% of pre-pandemic buyers purchased suburban homes. 

This reflects how COVID-19 has driven many buyers to search for homes outside of the city. With more Americans working remotely due to COVID-19, there is less need to live in urban areas and the suburbs have grown in popularity. 

The survey also found that buyers who purchased homes during the pandemic bought them at steeper prices than pre-pandemic buyers. Homes sold during the pandemic typically went for about $339,400, a substantial uptick from the typical pre-pandemic home which sold for $270,000. Data also shows that 23% of buyers who acquired a home after March purchased a home that cost $500,000 or more.

“Some of this is normal; it happens every year," realtor.com’s Chief Economist Danielle Hale said in a recent analysis of the survey. "We do know that spring and summer buyers tend to be families who purchase larger, more expensive homes.”

"But some of it could be driven by the pandemic," Hale added. 

It is undeniable that during the pandemic, home prices have surged as the housing inventory faces a shortage.

Although many people have recently been less inclined to sell their homes, those that did cited similar reasons for putting their home on the market. According to the survey, 15% of sellers who responded to the survey cited the desire to move closer to friends and family was the reason why they decided to sell. This was the most common reason sellers reportedly made this decision. 

Sellers also had very little difficulty selling their homes at the asking price this year. The final sales price for homes was a median of 99% of the final listing price, which makes sense considering how heated the housing market has been. In fact, the competition meant that those who chose to sell their homes after March sold their home for about $300,000, compared with those who sold their home before April sold it for about $270,000.

As for shifting trends for houses sold this year, the survey found that the typical home purchased was “1,900 square feet, had three bedrooms and two bathrooms, and was built in 1993.”

Jessica Lautz, NAR's VP of research, told realtor.com that larger homes became more popular this year for good reason.

"People are seeking more space either to home-school or work remotely or have more personal space," Lautz said.

The needs of buyers and sellers alike have changed this year, as more families are staying home for work and school. There is no telling how long COVID-19’s impact on housing market trends will last.

About Author: Cristin Espinosa

Cristin Espinosa is a reporter for DS News and MReport. She graduated from Southern Methodist University where she worked as an editor and later as a digital media producer for The Daily Campus. She has a broadcast background as well, serving as a producer for SMU-TV. She wrote for the food section during her fellowship at The Dallas Morning News and has also contributed to Advocate Magazine and The Dallas Observer.
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