As fears surrounding the spread of the Coronavirus (COVID-19) impacts economies and industries worldwide, a recent survey by the National Association of Realtors (NAR) details how the Coronavirus (COVID-19), changes in mortgage rates and huge swings in the stock market are impacting the behavior of home buyers and sellers on the West Coast and nationwide.
Mortgage Rate Change
The vast majority of sellers in California and Washington have decided not to make changes to their home listing despite concerns regarding the spread of the Coronavirus (COVID-19). California is actually reporting a surge in sellers entering the market to take advantage of the historically low interest rates. Just 4% of sellers both in California and nationwide have decided to remove their home from the market and refinance. That number is slightly higher in Washington at 6%. (see graph below)
Big fluctuations in the stock market over Cornonavirus (COVID-19) concerns doesn’t appear to be having a major impact on buyers’ behavior. According to the NAR Flash Survey, realtors reported their buyers are more excited by the lower mortgage rates than they are nervous about the stock market fluctuations. (see graph below)
The majority of members reported there has been no change in buyer interest due to the
coronavirus (COVID-19). However, 16 percent of members cited interest has decreased
nationwide. In California, 21 percent of members cited a decrease in interest. In Washington, 19
percent of members cited a decrease in interest.
Despite coronavirus (COVID-19) concerns and big fluctuations in the stock market, the majority of sellers are still choosing to list their homes. Nationwide, only 10% of realtors cited a decrease in interest. On the West Coast, California realtors are reporting a 14% decrease while Washington realtors are reporting a 15% decrease in interest. (see graph below)
Even fewer sellers are removing their home from the market due to coronavirus (COVID-19) concerns. Most markets reported no change; however, in Washington 5% of realtors reported homes removed from the market, California reported 4%.
Sellers are, however, changing some of their requirements when it comes to how their home is viewed. About one quarter of home sellers nationwide are making changes including stopping open houses, requiring buyers hand washing or hand sanitizing, or asking buyers to remove shoes and wear footies. In California, 34 percent of sellers have adopted these or other changes. In Washington, 44 percent of sellers have adopted these or other changes. (see graph below)
Sample: The survey was delivered to 70,036 residential members including 7,000 members in the states of California and Washington. The survey had 2,518 useable responses, including 313 from California and 308 from Washington.
Dates: The survey was deployed on Monday, March 9th, and was closed on Tuesday March 10th. One reminder email was sent.
The margin of error for overall results is +/-1.95 percent. This response rate is high
enough and the margin of error is low enough that the results can be considered
quantitative and reflective of all members within this margin of error.