The housing market has seen its ups and downs as a result of COVID-19, and now, summer homebuying season is in full force.
The National Association of Realtors released its Market Recovery Survey on Thursday, revealing that 45% of its members had reported that their market has slowly entered recovery mode.
Still, as states reopen, many Realtors are hesitant due to fears of a second wave of COVID-19, NAR said.
Only 39% of members reported being somewhat prepared for a second wave of COVID-19, and just 19% said they expect to be very prepared.
The housing market is rebounding in some regions – 28% of those surveyed said their market is coming back hotter than normal, 19% said their respective market is back to normal and 9% don’t feel like they have entered recovery yet.
Trends show that more apartment dwellers want to move to rural areas with bigger space. In fact, 28% who live in a small town or rural area reported that their market is actually hotter than normal.
And it’s not just apartment dwellers. Since stay-at-home orders went into effect and more workers are telecommuting, an increased number of people in general are fleeing the big cities to more rural areas and larger spaces in a home.
The report also showed that some renters have been disregarded in terms of government assistance and rent payments.
As such, 16% of property managers reported tenants had terminated their lease, compared to 6% among individual landlords.
However, property managers with residential tenants said that 42% of property managers had no issues with their tenants paying rent, compared to 63% of individual landlords, NAR said.
Despite no assistance, 40% of property managers reported being able to accommodate their tenants who cannot pay rent, but 27% reported it being difficult to do so.
Locations have been shifted by 24% of homeowners because they intend to buy a home as a result of the pandemic. Specifically, 47% of NAR members said their clients wanted to purchase in the suburbs, 39% planned to go rural and 25% said they were looking to move to a smaller town.
Meanwhile, 22% said they are less concerned about their commute. This is not surprising considering more companies are working remotely since the pandemic began.
Meanwhile, 49% of those in urban areas told NAR that their market is slowly entering recovery, compared to 40% in a small town or rural area.
On the other hand, 92% of respondents indicated that some of their buyers had returned to the market or just never left and 8% said that no buyers returned to the market.
For some buyers, the pandemic has left their timelines the same – 54% in fact. 27% of buyers felt more urgency to buy a home, while 18% reported less urgency.
Agents reported they expect the use of video technology to communicate with clients will increase 67%, while 24% expect the usage to remain the same and 8% expect a decrease.