COVID-19: Changes in the preferences of prospective homebuyers
The main reason why homebuyers’ mindset has changed is due to the challenges related to price discovery and job stability.
With open houses canceled throughout the globe and many brokerages switching to virtual showings, it is clear that the way people experience homes on the market is already influenced by the COVID-19 related restrictions blanketing much of the country. Moreover, the experience of spending so much time at home may change the way people feel about houses in general.
The survey was conducted during April 20-27, 2020, with a sample size of nearly 2,000 prospective buyers throughout the globe. 62% prospective buyers choose to purchase a home from leading developers with least project execution risks even if the real estate property is relatively higher priced.
Let’s have a look what are the priorities set by home hunters
Buyers looking to move out of the city
With the lockdown having forced people to spend a considerable amount of time in their homes, prospective homebuyers have been thinking carefully about what they’re really looking for in a new property in India. A number of city dwellers, which means looking further afield for a higher quality of life.
Homebuyers looking for bigger homes
As per a research, expectedly, 39% of under-50s said they’ll now be more inclined to look for a bigger home, while 17% of respondents said they had widened their property search area. On the other side, 20% of homeowners aged over 50 said they were now more persuaded to downsize to a smaller property than they were before the lockdown.
Will you be able to get a mortgage?
If you’re assessing your mortgage options, let us tell you that many mortgage deals had fallen during lockdown period. Many best rates are still around, and banks have begun offering ‘desktop’ mortgage valuations. On the other side, you might struggle to get the best mortgage deal if you’ve been furloughed. The reason is many lenders will only take the furloughed income into account, instead your usual salary, and others won’t accept this income at all.
The COVID-19 pandemic has changed people’s preferences of purchasing homes. After spending a lot of time in their homes, they have realized and now preferring risk-free investment. The main reason behind changing the mindset is because of the price discovery challenges and job stability.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
