NAR Flash Survey: Economic Pulse

On April 5-6, NAR conducted a flash survey of members on the impact of the coronavirus on their market. The survey was delivered to a random sample of 92,630 members. For 93% of respondents, the majority of their business is residential. For 5% of respondents, the majority of their business is commercial.

Twenty-six percent of members cited being able to complete nearly all aspects of transactions while respecting social distance. Fifty-nine percent of members reported buyers are delaying their home purchase for a couple of months.

PRESS RELEASE

WASHINGTON (April 9, 2020) – With an expected slowdown in spring real estate business activity, many Realtors® remain hopeful for a post-pandemic market rebound, according to a new survey from the National Association of Realtors®. The majority of Realtors® believe buyers and sellers will return to the market as delayed transactions following the end of the health crisis. Nearly six out of 10 members – 59% – said buyers are delaying home purchases for a couple of months, while a similar share of members – 57% – said sellers are delaying home sales for a couple of months.

“Home sales will decline this spring season because of unique economic and social consequences resulting from the coronavirus outbreak, but much of the activity looks to reappear later in the year,” said NAR Chief Economist Lawrence Yun. “Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with less immediate concerns over foreclosures.”

NAR’s latest Economic Pulse Flash Survey – conducted April 5-6, 2020 – asked members questions about how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights of the member survey include:

  • Due to the outbreak, 90% of members said buyer interest declined and 80% of members cited a decline in the number of homes on the market.
  • Home prices look to hold steady after rising robustly before the pandemic. Almost three in four members – 72% – said sellers have not reduced prices to attract buyers. Conversely, more than six in 10 members – 63% – said buyers are expecting a decline in home prices as buyers sense less competition in the current environment.
  • Technology plays a vital role as the real estate industry adapts to the new reality of managing deals virtually with social distancing directives in place. Members said the most common technology tools used to interact with clients are e-signatures, social media, messaging apps and virtual tours.
  • Residential tenants are facing rent payment issues, but many delayed payment requests are being accommodated. Nearly half of property managers – 46% – reported being able to accommodate tenants who cannot pay rent and more than a quarter of individual landlords – 27% – said the same. The recently enacted Coronavirus Aid, Relief, and Economic Security Act includes provisions on eviction prevention and small business loans and grants that are critical to keeping the rental market steady.

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