NAR Flash Survey: Economic Pulse
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Tenants Paying Rent Of those who work with residential tenants, 38 percent of property managers cited having no issues with their tenants paying the rent, compared to 60 percent of individual landlords. Forty-two percent of property managers reported being able to accommodate their tenants who cannot pay rent and 17 percent cited it being difficult. Among individual landlords, 25 percent of individual landlords reported being able to accommodate their tenants who cannot pay rent and twelve percent cited it being difficult. Small portions (less than 10 percent) of property managers and individual landlords reported tenants terminating their leases.
Social Distancing and Transactions Thirty-four percent of members were able to complete nearly all aspects of transactions while respecting social distance. With minor modifications such as using masks and gloves,45 percent felt person-to-person interactions were still required. Six percent postponed home searching and 11 percent stated that the mandate of stay-at-home prevents them from completing transactions.
Buyer Behavior Thirty-four percent of members reported buyers are delaying their home purchase for a couple of months. Nineteen percent stopped looking due to concern about losing their job. Ten percent reported members are continuing the process, but only relying on virtual communication. Six percent reported clients are deciding not to buy or sell indefinitely. Twenty-three percent reported there is no change in client behavior, and they continue to meet in person.
Buyer Interest Sixty-four percent of members cited a decline in buyer interest. Twenty-four percent reported a decline by more than 50 percent. Eighteen percent of members cited no change in activity and 18 percent cited an increase in activity. Twenty-two percent of members who worked with a buyer who put a contract on a home this week reported at least one buyer only saw that home virtually.
Buyer Expectations of Home Prices Forty-five percent of members said buyers are not expecting lower home prices. Nineteen percent expect a less than five percent decrease, with 20 percent expecting a decrease by five to 10 percent.
Seller Behavior Similar to buyers’ behaviors, 38 percent of members reported sellers are delaying their home sale for a couple of months. Thirteen percent reported members are continuing the process, but only relying on virtual communication. Seven percent reported clients are deciding not to buy or sell indefinitely. Twenty percent reported there is no change in client behavior, and they continue to meet in person.
Sellers Reduced Listing Price Sixty-six percent of members reported working with home sellers. Of those who are currently working with sellers, 68 percent said that no sellers have reduced the price to attract buyers. Nineteen percent reported sale prices reduced by less than five percent. Only two percent reported reductions of more than 15 percent.
Seller Behavior Of those who are working with home sellers with active listings, the majority reported changing how their clients’ homes are viewed while the home remains on the market. Ninetytwo percent reported that home sellers have made changes, including stopping open houses or requiring all those who enter the home to take appropriate precautions before entering home.
Residential Closing Delays Of those who are closing residential transactions, 43 percent have reported no closing delays. Delays in closing happened for a number of reasons including delays with financing, buyers no longer qualifying due to loss of job, home inspections, final walk-throughs, title searches, and in-person signatures.
The National Association of REALTORS® is America’s largest trade association, representing more than 1.4 million members, including NAR’s institutes, societies and councils, involved in all aspects of the real estate industry. NAR membership includes brokers, salespeople, property managers, appraisers, counselors and others engaged in both residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. Working for America’s property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. NATIONAL ASSOCIATION OF REALTORS® RESEARCH GROUP The Mission of the NATIONAL ASSOCIATION OF REALTORS® Research Group is to produce timely, data-driven market analysis and authoritative business intelligence to serve members, and inform consumers, policymakers and the media in a professional and accessible manner. To find out about other products from NAR’s Research Group, visit nar.realtor/research-and-statistics NATIONAL ASSOCIATION OF REALTORS® Research Group 500 New Jersey Avenue, NW Washington, DC 20001 202-383-1000 data@realtors.org