In June 2020, a poll was given to over 2,000 potential home buyers looking to make a purchase in the next year. Of those 2,000 participants, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely. Nearly 40% of that number was expected to purchase a home within four to six months, and 13% said changes related to the pandemic sparked their interest to buy a new home (MReport).
The pandemic has undoubtedly led to a change in the real estate market, and will continue to do so in the coming year. Remote working has us spending more time at home than ever, changing the way we frame our purchasing decisions. So how exactly has remote working shifted the real estate market? Let’s dive in.
Remote working allows for geographical flexibility.
Commute time has always been a big deciding factor in purchasing a home. However with remote employees being less tied to their work centers amidst the pandemic, this factor has become less important in the home buying process. Particularly for those who worked in major cities, the cost of living is exponentially higher. With remote working as an option, professionals everywhere are jumping the gun to find affordable living outside their typical commute length. Because professionals don’t want to feel too isolated, many are looking to the suburbs for home purchases. Some are even looking to move cities or states completely, as they have no bounds to their office space.
Demand for housing features has changed.
It took remote working for people to realize that maybe their home isn’t quite built out for it. Many of us were suddenly forced to work in our beds, or in packed spaces with other family members and various distractions. Having a quiet space for a home office is more important than ever for work productivity and creativity flow. Homes that offer an additional bedroom or finished basement are now in higher demand, and have a higher chance of being competitive in the market.
Homeowners are looking to settle down.
If there’s one thing the pandemic taught us, it’s that life is unpredictable. We feel uneasy making big life decisions, because the uncertainty of tomorrow is unknown. Homeowners today are looking for stability. With the addition of remote working, homeowners aren’t forced to relocate if their company moves or they switch jobs. It’s likely that companies will continue to offer remote working flexibility for the foreseeable future, which provides freedom for prospective home buyers.
Looking to relocate and/or buy a home in the next year? Ken Venick can help! Ken has over 30 years of experience in the mortgage loan business and can put you in the right mortgage loan product for your unique needs. Visit our FAQ page to learn more and contact us today!