Remote workers could continue to drive the post-pandemic market

Tim Inklebarger Leave a comment

The pandemic-driven trend of working from home is driving home buyers to suburban areas in search of larger residences, and it could just be the beginning, according to a new report from the real estate media company Homes.com.

Homes.com President David Mele discussed the report at the National Association of Real Estate Editors 54th Annual Real Estate Journalism Conference, noting that while the flight to the suburbs trend is real, it also is likely to continue well after a vaccine becomes widely available.

“This is really just getting started,” Mele said in the panel Suburban Migration and Coronavirus Changes. The trend could increase post-pandemic, he said, because many workers are still waiting to see if they will work from home permanently.

Homes.com’s study of more than 1,000 consumers and 600 real estate professionals shows that buyers are not only moving away from urban areas, but they’re also making more long-distance moves.

Mele said that the survey revealed that 70% of respondents said their pandemic relocation is permanent. One out of three respondents who relocated in the last 12 months did not plan to move prior to the pandemic. And one in four said the move “was sparked by a change in their job situation, presumably caused by the pandemic,” the report noted.

Forty-five percent of those who haven’t moved said they would if given the opportunity to work from home, and 20% said working remotely made their move possible.

Industry professionals were optimistic about 2021 as well, with a majority of industry experts (57%) anticipating continued robust homebuying activity. Another 28% of respondents said they expect more transactions next year.

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence,” Mele said in a press release. “That, in turn, is prompting changes for real estate professionals, many of whom are expanding their market area to better serve clients who are moving farther than before. If working from home becomes standard operating procedure for many companies, as predicted, these changes will be with us for years to come.”

Other highlights from the survey include:

  • 40% who moved or plan to are moving more than 100 miles away, and are moving over 500 miles.
  • Approximately 30% are leaving cities for the suburbs.
  • 15% are looking for less populated areas.
  • 78% of real estate professionals said requests for home offices are the No. 1 change. Larger square foot was next at 57%, followed by outdoor recreational spaces at 45%, and upgraded kitchens at 44%.
  • The buyer’s market has made made sellers less likely to accept a contingency (69%), show a house without a pre-approval letter (59%), negotiate on repairs (57%) or negotiate with buyers for a quick sale (40%).

How Realtors are giving back during the pandemic

Kerrie Kennedy Leave a comment

As the coronavirus pandemic continues to batter communities across the country, real estate agents and their brokerages have responded with unprecedented volunteerism and donations, according to a new report from the National Association of Realtors.

The Community Aid and Real Estate Report – the CARE Report – shows that the median annual value of Realtor associations’ donations to communities doubled from $5,000 in 2018 to $10,000 in 2020.

A whopping 92% of broker-owners made pandemic-related donations in 2020, up from 81% in 2018. The median amount broker-owners donated annually was $2,000.

Food banks were one of the top recipients of Realtor generosity — 36% of brokers and their firms donated nonperishables or cash to food banks during the pandemic, 27% donated masks and protective gear, 16% donated school meals to children and 9% were able to provide stable and secure housing to those in need.

In addition to monetary donations, Realtors responded to the pandemic by making food deliveries to the elderly and frontline workers, conducting wellness checks and visits to senior neighbors and offering virtual companionship to those isolated or quarantined alone.

Some 67% survey respondents polled by NAR said they volunteered in their communities on a monthly basis as compared to 66% in 2018, the last time the study was conducted, and 85% said that community involvement was an important part of their business plan.  Among broker-owners, 79% volunteered their time on a monthly basis, versus 77% in 2018.

“Realtors are in the business of helping people and serving their communities, and we’ve seen countless examples of this play out nationwide during this pandemic,” said NAR President Charlie Oppler in a press release. “To hear that my colleagues in the real estate industry have pitched in to an even greater degree than usual is indeed heartwarming, but it is also not surprising. Historically, Realtors have a proven track record of donating time, money and energy toward various charities and volunteer efforts.”

Nearly 70% of association executives or multiple listing service staff also said they volunteered monthly, 93% of them made personal donations and 91% conducted a fundraiser for their community in 2020, an increase from 89% in 2018.

Philanthropic efforts among brokerages were also up this year: 68% percent of members reported that their firm urged employees to volunteer, up from 64% in 2018.

“Since I entered this industry, I always valued giving back to the community and the ideal of paying it forward,” said Oppler, whose 2021 plan includes volunteerism and community services initiatives. “I have no doubt that America’s 1.4 million Realtors will continue to help our neighbors and lend assistance wherever possible as we collectively work to move beyond COVID-19 in the coming months.”