SANTA CLARA, Calif.,
Oct. 7, 2020 /PRNewswire/ -- The
COVID-19 pandemic has made nearly half of millennial home shoppers
speed up their home buying timeline, according to a recent
realtor.com® and HarrisX survey of 2,000 home shoppers
who plan on purchasing a home within the next year. Data shows the
largest generation in U.S. history is prepared for a competitive
market and they aren't above receiving financial assistance from
family or friends to make their home buying dreams a reality.
"If there is any silver lining to the current economic
landscape, it's that mortgage rates are hanging around record lows.
With little to no equity to leverage, millennial home buyers tend
to take out larger loans. Historically low rates are making this
more manageable, even with rising home prices," said Danielle Hale, chief economist at
realtor.com®. "Additionally, shelter-in-place orders
helped many who were fortunate enough to keep their jobs save for a
down payment -- one of the largest hurdles of buying a home. The
combination of low rates and the opportunity to save is enabling
many millennials to move up their home buying timeline."
COVID accelerates millennials' plans to purchase a
home
- Of survey respondents, 75% of millennials have been working
remotely since the COVID pandemic hit. Of those respondents, 63%
said they plan on purchasing a home because of their ability to
work remotely.
- Nearly half of millennial responents -- 49% -- reported COVID
has pushed them to buy a home sooner than their original
timeline.
Millennials are taking advantage of virtual home search
techniques
- Fifty-nine percent of millennials reported COVID has changed
the way they are approaching their home search. Of those
respondents:
-
- Thirty-seven percent are spending more time researching
properties online.
- Thirty-five percent are spending more time looking at listings
photos.
- Thirty-two percent are spending more time watching listing
videos.
- Thirty-one percent are being more selective about the homes
they decide to tour.
- Twenty-seven percent are driving by the home to check out the
neighborhood.
Millennials are ready for some competition
- Seventy-one percent of millennial respondents expect some or a
lot of competition in the market when shopping for a home.
- Luckily, 68% reported that shelter in place orders helped them
save for their down payment.
- With home prices quickly rising, 45% expect to receive
financial assistance from family or friends.
Millennials are tired of their homes and they want room to
grow a family
- Over a quarter -- 26% -- of millennials reported they were
tired of their current home and that was driving their desire to
purchase a home.
- Twenty-three percent of millennials reported a growing family
as the main driver for wanting to buy a home.
- Twenty-two percent reported favorable home prices, 20% reported
favorable interest rates, and 18% reported the desire to live in a
safer neighborhood.
More than half of millennials reported they are looking for a
home below the U.S. median home price of $350,000
- Thirty-six percent are looking for an "entry-level" home at or
under $200,000.
- Twenty-eight percent are looking for a home between
$200,000 and $350,000
-
- This means 63% of millennial homebuyers are looking to purchase
a home at or below $350,000 -- the
median price of a home in the U.S.
- Meanwhile, 37% of millennials are looking for a home over
$350,000.
- Fifty-four percent believe home prices have hit their
peak.
Most millennials aren't trying to move very far
- Nearly half of millennials -- 49% -- reported they want to move
within their current city.
- Thirty-one percent reported from within the city to the nearby
suburbs. According to the survey, millennials expressed a greater
desire to move to the suburbs than Gen X or Baby Boomers.
- Thirteen percent reported from one city to another within the
same state, while only 8% want to move to a completely different
state.
The largest generation in U.S. history
Millennials are the largest generation in U.S. history,
surpassing Baby Boomers. They were born between 1981 and 1997. For
the last 5 years, they have been the dominant buying force in the
market.
This survey was conducted in June of 2,000 home shoppers who
plan on purchasing a home within the next year.
About realtor.com®
Realtor.com® makes buying, selling and living in
homes easier and more rewarding for everyone.
Realtor.com® pioneered the world of digital real estate
20 years ago, and today through its website and mobile apps is a
trusted source for the information, tools and professional
expertise that help people move confidently through every step of
their home journey. Using proprietary data science and machine
learning technology, realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For
professionals, realtor.com® is a trusted
provider of consumer connections and branding solutions that help
them succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. under a perpetual license from the National
Association of REALTORS®. For more information,
visit realtor.com®.
About HarrisX
HarrisX is a leading opinion research company that specializes
in online polling, mixed-mode polling, and data analytics. The
company has a thirteen-year history assessing public opinion and
behavior in the telecom, media, and technology industries through
syndicated and custom research services. HarrisX runs the Mobile
Insights and Total Communication Surveys, the largest syndicated
consumer insights trackers in the United
States for the TMT space, which include over 60,000 monthly
respondents; the Telephia (beta) metering application, which
captures behavioral data; and HarrisX Overnight Poll, which
delivers results of general population and voter surveys within 24
hours, looking at Americans' opinions on society, politics,
technology, and the economy. For more information, visit:
www.harrisx.com.
Media Contacts:
Cody Horvat,
cody.horvat@move.com
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SOURCE realtor.com