NAR Survey: Half of Realtors Say Buyer Interest Has Decreased Due to the Coronavirus Outbreak
Real Estate In-Depth | March 27, 2020
WASHINGTON—Nearly half of Realtors—48%—said home buyer interest had decreased due to the coronavirus outbreak, according to a new survey from the National Association of Realtors released on March 19. That percentage tripled from a week earlier when it stood at 16%. Almost seven in 10 Realtors—69%—said there’s no change in the number of homes on the market due to the coronavirus outbreak, down from 87% a week ago.
“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” said NAR Chief Economist Lawrence Yun. “With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic ‘quarantine’ is lifted, and it’s critical that supply is sufficient to meet pent-up demand.”
NAR’s latest Economic Pulse Flash Survey—conducted March 16-17, 2020—asked members questions about how the coronavirus outbreak, including the significant declines in stock market values and mortgage interest rates, has impacted home buyer and seller interest and behavior as well as new commercial clients who want to lease and purchase property. With respect to the coronavirus, several highlights of the member survey include:
• 45% of members said the stock market correction and lower mortgage rates roughly balanced out, noting no significant change in buyer behavior.
• The majority of members, 61%, reported no change in sellers removing homes from the market, down from 81% a week ago.
• Four in 10 members said home sellers have not changed how their home is viewed while it remains on the market. One week ago, nearly eight in 10 members— 77%—said the same.
• More than half of commercial members, 54%, have seen a decline in leasing clients, up from 18% of commercial members last week.
• Eighty-three percent of commercial buildings have changed practices, with the most common being offering more hand sanitizer, more frequent building cleanings, and increasing numbers of tenants working remotely.