Home Buying Trends Emerging from COVID-19

How COVID-19 is Affecting Buying Trends

Coronavirus has made many of us rethink what is important to us…and our homes are no exception. According to the National Association of REALTORS® (NAR), the top feature desired by buyers is now a home office (or even more than one). 22% of buyers are less concerned about their commute, which means homes in affordable areas outside the city are now in high demand. Some buyers are considering second homes in rural areas. Outdoor space is also trending with more buyers wanting a yard for veggies and exercise. Here are some insights from a recent nationwide survey conducted by the National Association of REALTORS® (NAR)…

This chart shows which features are more important to buyers due to COVID-19, based on a recent survey of buyer's agents.

 

We’re also seeing the family unit become more important. While smaller urban homes were once in top demand, we’re now seeing a boost in multi-generational living with buyers seeking larger suburban homes that have space for everyone. Additionally, recent surveys show that more buyers—especially young buyers in their twenties—are moving to live closer to family and friends.

 

Another big trend? Pets! We’re seeing a surge in households that want a pet, and a 2020 NAR survey revealed that 43% of households say they’d be willing to move to accommodate their pet. This is another reason yards and even acreage are now trending among buyers. Pet fever could potentially lessen the demand for condos with strict pet policies—in the same survey, 68% of REALTORS® said that community animal policies influenced their clients’ decision to rent/buy in a particular community.

 


 

 

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2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446 mercerisland@windermere.com

Source: REALTOR Magazine, National Association of REALTORS.
© Copyright 2020, Windermere Real Estate/Mercer Island.

Posted on September 3, 2020 at 11:51 am
Windermere MI | Category: Seattle Area Real Estate | Tagged , , , , ,

Interest rates make a BIG difference when you buy…

How Interest Rates Impact Your Buying Power

 

You probably know that interest rates affect your monthly mortgage payments, but most of us aren’t aware of just how big an impact they really have on a home loan. Each 1% change in interest rate equates to roughly a 10% change in buying power. This means you can qualify for a much more expensive home when rates are low, whereas higher rates mean you qualify for less home—even though you still pay the same monthly payment.

 

This first chart shows how much house you can buy for a set monthly payment. If you have $4,000 a month to budget for a house payment (before taxes and insurance), you could purchase a $949,000 house at today’s historically low 3% mortgage rate. If rates went up to 4%, the same monthly payment would only get you an $838,000 home. Your buying power diminishes considerably with each bump up in rates.

 

What you can afford based on the current interest rate..

 

Scrolling down, this second chart shows how interest rates impact monthly payments. If you’re purchasing a $950,000 house at today’s 3% interest rate, you’ll be paying $530 less every month than if you’d bought that same house when rates were 4%. That adds up quick…$6,360 in one year alone! This explains why so many renters are eagerly looking to buy right now, and why homeowners are refinancing at record rates.

 

Your monthly payment based on the current interest rate

 

Want to know how you can best take advantage of these historical low mortgage rates? Reach out to me for help evaluating whether it would make financial sense to refinance, buy, or sell while rates are low. I am always happy to be a resource!

 


 

 

Find a Home | Sell Your Home | Property Research

Neighborhoods | Market Reports | Our Team

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446 mercerisland@windermere.com

 

© Copyright 2020, Windermere Real Estate/Mercer Island.

Posted on August 5, 2020 at 9:06 am
Windermere MI | Category: Seattle Area Real Estate | Tagged , , , , , , , ,