Buying Trends Influenced by the Pandemic
Around the country, home prices are up 7.5% since last year. In Southern California, home prices rose almost 8% in the Inland Empire, 6% in Los Angeles, and 5% in Orange County. This increase represents the largest jump in Southern California home prices in nearly two years. Despite rising prices, COVID-19 has extended the buying and selling season as an increasing number of prospective buyers are looking to upgrade their living situation.
New Home Traffic is Down but Quality and Conversion Rate is Up
Due to restrictions from the pandemic, homebuyer traffic is down to an appointment only basis, which means that the quality of traffic is up. More prospective buyers are ready to make a purchase. A recent study conducted by Lending Tree found that 53% of all homebuyers were more likely to buy a home within the next year, despite the current health emergency. This is especially true for first-time homebuyers and millennials.
Of the survey’s respondents, 67% listed low mortgage rates as the top reason they were considering buying a home this year. Low mortgage rates were followed by increased ability to save money for a down payment due to stay at home orders. The survey found that 28% of prospective homebuyers were motivated to buy after being stuck in a small space throughout quarantine.
Another interesting trend is that 3 in 10 prospective buyers said they would purchase a new home in the coming year without touring it in person. This is excellent news for real estate agents, as virtual tours enable safe showings and make it possible to show more homes in a shorter amount of time.
Another study, NAHB’s Housing Trends Report, found that 50% of the 13% of American adults considering a home purchase during the third quarter of 2020 have moved from planning to actively trying to find a home to buy. As motivated buyers take advantage of record-low interest rates, the number of home sales are expected to increase over the next few months throughout much of California.
Orange County Homes for Sale
Prospective buyers looking to move into a bigger home should act fast if they want to take advantage of low interest rates and find a home that suits their needs. Despite rising demand, Southern California still has relatively low inventory. This is causing new homes, especially single-family homes, to sell extremely fast.
Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers.