One reason the real estate market is rebounding? Buyers who didn’t lose a job have saved more money by cooking at home and saving on commuting costs.

CHICAGO – Despite high unemployment numbers, nearly two-thirds of buyers recently surveyed say they’ve been able to save more money for their down payment – a result of the shelter-in-place orders this spring.

Many of these buyers factored their increased savings into today’s lower rates (the 30-year fixed-rate mortgage hit 2.98% last week), and they’re now stretching their budgets and searching for larger homes in pricier neighborhoods, according to a new survey from realtor.com. The survey reflects responses from 2,000 consumers who plan to purchase a home in the next 12 months.

Of those surveyed, 38% of buyers said they’ve increased their target price range since starting a home search. And 41% said they’re looking to buy sooner because of the COVID-19 pandemic.

“While the health and economic impact [from the COVID-19 pandemic] has been significant, the U.S. housing market has remained surprisingly resilient, and consumers continue to view homeownership as the foundation of the American dream,” says George Ratiu, realtor.com’s senior economist. “Home buyers remain steadfast in the main attributes they seek – three bedrooms, two bathrooms and a garage. However, the quarantine has made people rethink where and why they want a new home.”

Buyers called garages one of the most important home features, according to the survey. Also, renovated kitchens and large backyard spaces ranked among the top features buyers wanted in both the spring and summer surveys, with 84% of buyers looking for a move-in ready home.

Longer commutes may not be a deal breaker anymore either. Remote work options have changed many people’s daily patterns, and more buyers seem willing to live farther away from their workplaces. In early spring, 3% of buyers said they’d be willing to commute for over an hour, but that rose to 9% in the latest survey.

Source: realtor.com

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Topics: trends

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