The coronavirus pandemic — coupled with historically low mortgage rates — is motivating a majority of homebuyers to purchase a home in the coming year, according to results from LendingTree’s latest survey.
The LendingTree surveyed over 1,000 prospective buyers about their plans to jump into the housing market – or not. The results indicate that 53% of all homebuyers are more likely to purchase within the next year.
Here are the top three reasons why buyers are more likely to purchase in 2020:
1. Record-Low Mortgage Rates
Mortgage interest rates have dropped considerably this spring and are hovering at a historically low level. This is a huge motivator for purchasing in 2020, especially among first time home buyers and millennials. Low mortgage rates are the #1 incentive to purchase in 2020 among survey respondents. 67% of those more likely to purchase this year are incentivized to purchase based on the historically low rates.
2. Reduced Spending Due To Coronavirus
The coronavirus pandemic has restricted many individuals and families to their homes allowing them to reduce spending and save for a larger down payment. With the majority of states enforcing a shelter in place, many have found themselves minimizing extra spending such as social outings, impulse buying, commuting expenses, etc. making the home buying process more affordable today.
3. Time To Reevaluate Living Space
Again, with how much time buyers have been spending at home, they have been given the chance to really evaluate their living spaces. 28% of survey respondents said that being stuck in a small space made them want their own home even more. With more available time to map out what they really want in their next home, many are looking for more square footage and a more spacious neighborhood.
The Bottom Line
Keep your prospects informed. During these unprecedented times, residents want to know what is happening in their market. Offer them up to date mortgage rates, market reports, and how COVID-19 might be impacting their area.
The Neighborhood Connection is committed to helping your business thrive. Through our direct marketing services, we can support you in getting your message out in a thoughtful and sensitive manner. Once the dust settles, the 20% who were less likely to purchase in 2020 will value your commitment to the community and remember you when they’re ready to buy or sell.