Home prices have remained stable during the pandemic, keeping the housing market afloat during the trying spring months. Now, the long-awaited recovery may be on its way. Realtors are reporting that demand is making a comeback, and while real estate investors have retreated, first-time home buyers have increased their market share, according to the National Association of Realtors. Listings did drop in April, thanks to stay-at-home orders and the economic uncertainty, but the April NAR report says that listings are projected to bounce back in May. See what else is in store for the housing market in NAR’s latest survey results.
Every month, the National Association of REALTORS® conducts a monthly survey of its members about their monthly transactions and their outlook in the next 12 months. NAR’s April 2020 Realtors® Confidence Index (RCI) Survey shows the effect of coronavirus social distancing measures on the housing market. Here are five trends based on the latest April 2020 data:
Rising share of first-time buyers as investor buyers retreat
The negative economic impact of social distancing measures has shifted the mix of homebuyers. Investor buyers have retreated, while the share of first-time buyers has increased. The share of first-time buyers rose to 36% in April 2020, up from 32% one year ago.
Meanwhile, sales for investment rental or vacation use declined to 10%. The share of purchases for investment rental dropped from 11% in February to 6% in April 2020.
With fewer investor buyers, cash sales decreased to 15% of existing home purchases, down from 20% one year ago.
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