A Quarter of Realtors® This Week Report Homes Coming Under Contract Without Buyers First Visiting the Property
WASHINGTON (April 16, 2020) – A quarter of Realtors® with clients putting contracts on homes this week had at least one do so without physically seeing the property, according to a new survey from the National Association of Realtors®. For those clients, the median amount of homes toured – either virtually or in person – before putting a contract on a home was just three. NAR’s 2019 Profile of Home Buyers and Sellers found buyers typically looked at nine homes before placing a contract on a home.
“Expect second quarter home sales activity to slow down with the broad observance of stay-at-home orders, but sales will pick up when the economy reopens as many potential home buyers and sellers indicate they’re still in the market or will be in a couple of months” said NAR Chief Economist Lawrence Yun. “Home prices remain stable as deals continue to happen with the growing use of new technology tools. Remarkably, 10% of Realtors® report the same level or even more business activity now than before the economic lockdown.”
NAR’s latest Economic Pulse Flash Survey – conducted April 12-13, 2020 – asked members about how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include:
- A third of Realtors® – 33% – reported no closing delays. For those reporting delays, the top reasons listed included delays in financing, appraisals and home inspections.
- Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Forty-one percent of property managers reported being able to accommodate tenants who cannot pay rent and about a quarter of individual landlords – 24% – said the same.
NAR also today released its 2020 Down Payment Expectations & Hurdles to Home Ownership report, which offers home buyer, consumer, and Realtor® perspectives on down payments and family involvement in the home buying process. Several highlights include:
- Nearly a quarter of Millennials – 24% – received down payment assistance from a parent or relative.
- A majority of Realtors® – 65% – said that in the last five years they’ve had clients receive down payment assistance from a parent or relative.