SANTA CLARA, Calif.,
June 17, 2021 /PRNewswire/ -- Life is
beginning to return to normal throughout the U.S. with many
companies announcing their return to office strategies and cities
beginning to open up. However, for many 2021 home shoppers who
spent the majority of 2020 confined to their homes, the COVID
pandemic has influenced what they are looking for in their next
house, while the hyper-competitive housing market has them
strategizing about how to get ahead, according to a new
Realtor.com® survey released today.
The need for more space was the top reason driving home
shoppers' decision to purchase a new home in the coming year,
according to the online survey of 1,200 home shoppers conducted
this spring by HarrisX. Although the majority of today's buyers are
looking for three bedrooms and two baths, their responses indicate
they are looking for more flexibility in their home space and
affordability in exchange for a shorter commute -- the new
realities of a post-COVID world.
"The COVID pandemic ushered in a new way of thinking about what
home means, and that is influencing much of what today's home
shoppers are looking for," said George
Ratiu, senior economist, Realtor.com®. "Garages,
large backyards and space for pets always rank high on buyers' wish
lists, but those features have grown in importance. The survey
results highlight that the pandemic has elevated our relationship
with family as well as the need for our home to serve multiple
purposes, especially the ability to work remotely. As a result, we
are placing a premium on the need to accommodate extended family,
and features like a home office and broadband internet."
What's in and what's out for post-COVID home
shoppers
When asked which home features have become a
priority as a result of the pandemic, quiet location (28%), updated
kitchen (25%), garage and large backyard (24% each) topped the
list. Outdoor living area (20%), space for pets (18%), updated
bathrooms (19%), home office and broadband internet capabilities
(17% each) and open floor plan (16%) rounded out the top 10
pandemic-induced most desired home features.
Sixty-five percent of respondents indicated that they are
considering extended family when they shop for a home, with nearly
a quarter stating that they are planning to buy near family
members. One-fifth of those surveyed said they would have extended
family living with them full-time and 30% said their new home would
need to accommodate extended family staying with them part-time or
visiting.
Consistent with the desire for outdoor space, terms such as
"fenced yard," "acres," "backyard," "front porch," "garage" and
"three-car garage" have all seen a significant uptick in searches
on Realtor.com® over the past year. With reports of
pets being adopted at record rates during the pandemic, the term
"pet friendly" also saw a large increase in searches.
Decreasing in importance from prior surveys was the need for a
short commute time and a home with smaller square footage. Only 9%
indicated a short commute time was a priority and 4% were looking
for smaller square footage. This was down from 11% and 8%,
respectively, in early March 2020
prior to the pandemic.
Perhaps due to rising home prices, searches for "remodeled"
homes on Realtor.com® were down 88% year to date
through May. It appears that motivated buyers are making
concessions in their home search, with fewer searches for
otherwise-popular features such as granite countertops (-58%),
theater/media rooms (-65%), and bars (-52%).
Today's buyer is prepared and willing to
compromise
Again, pragmatic about the competitive housing
market, 35% of home shoppers said that they were checking listing
websites every day and 25% had set a price alert to get notified
when new homes hit the market to stay ahead of the competition.
From a financing perspective, 28% indicated that they were
planning to offer more than a 20% cash payment, 21% plan to
increase their earnest money deposit and 17% plan to either offer
above asking price or all cash. While a third said they would not
offer above asking price, nearly half were prepared to offer up to
10% above asking.
"In today's competitive housing market, it is not uncommon to
submit an offer above the home's list price. At the same time,
knowing what you can spend and sticking to your budget is one of
the most important things a home buyer can do. One way to ensure
that you don't go over budget is to limit your search by using
price filters to homes under your budget. That way, if you submit
an offer that is over the list price, you'll still be within your
maximum budget," said Realtor.com® Housing and
Lifestyle Expert Lexie Holbert.
When buyers were asked to select which features they would
sacrifice if they had to reduce their budget, several COVID-coveted
features would be the first to go with man cave and pool/spa tied
at 24%, followed by guest house and mother-in-law suite both 23%
and new construction at 22%, Rounding out the top 10 features to
fall by the wayside were solar panels (21%), finished basement
(20%), home office (18%), large backyard and guest room (both
17%).
Methodology: Realtor.com® commissioned
HarrisX to conduct a national survey of consumers, including 1,218
adults over the age of 18 who plan to purchase a home within the
next 12 months.This survey was conducted online within the United States from March 26 - April 7, 2021. The sampling margin of
error of this poll is plus or minus 1.6 percentage points. Results
were weighted for age, gender, region, race/ethnicity, and income
where necessary to align them with their actual proportions in the
population. In addition to the general population, the survey
oversampled 1,218 potential buyers with a margin of error of plus
or minus 2.8 percentage points.
The search information contained in the release is based on an
analysis of the most commonly searched keywords on
Realtor.com® from Jan. 1 - May
31, 2021.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 20 years ago, and today through
its website and mobile apps is a trusted source for the
information, tools and professional expertise that help people move
confidently through every step of their home journey. Using
proprietary data science and machine learning technology,
Realtor.com® pairs buyers and sellers with local agents
in their market, helping take the guesswork out of buying and
selling a home. For professionals, Realtor.com® is a
trusted provider of consumer connections and branding solutions
that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
license from the National Association of REALTORS®. For more
information, visit Realtor.com®.
Media Contact
janice.mcdill@move.com
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SOURCE Realtor.com