3 Reasons Homebuyers Will Purchase This Year

People buy a home for many reasons. Marriage and growing a family is a big reason. Wanting to get out from paying rent is another. Making the decision to start building family wealth is a great and common decision for becoming a homeowner (my wealth building blog). But this year and this time right now has given us some new reasons that makes this the year of the buyer.

A recent survey by Lending Tree tapped in the behaviors of over 1000 prospective buyers. The results indicated 53% of all homebuyers are more likely to buy a home in the next year, even amid the current health crisis. And in some cases, because of the result of the almost-national lockdown. The survey further revealed why, naming several reasons buyers are more likely to move this year (see graph below):

Let's break down why these are a few of the key factors motivating buyers to actively engage in the home search process, and the corresponding wins for sellers as well.

1. Low Mortgage Rates

The biggest reason potential homebuyers indicated they're eager to purchase this year to due to current mortgage rates, which are hovering at near all-time lows. Today's low rates are making it more affordable than ever to buy a home, which is a huge incentive for purchasers. In fact, 67% or responders in the Lending Tree survey said they want to take advantage of low mortgage rates. This is not surprising when comparing historic mortgage rates by decade (see below):

Sam Khater, Chief Economist at Freddie Mac recently said:

"As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery."

2. Reduced Spending

Some people have been able to save a little extra money over the past few months while sheltering in place. One of the upsides of staying home recently is that many have been able to work remotely and minimize extra spending on things like commuting expenses, social events and more. For those that fall into this category, they many have a bit more saved up for a down payment and closing costs, making purchasing a home more feasible today. Even if you weren't working remotely from home during this time, you most likely saved money due to your favorite off-work establishments were closed, like restaurants and bars, shopping malls, movie theaters and more. 

3. Re-Evaluating Their Space

Spending time at home has also given buyers a chance to really evaluate their living space, whether renting or as a current homeowner. With time available to craft a wish list of what they really need in their next home, from more square footage to a more spacious neighborhood, they're ready to make a change. We didn't even mention that with everyone at home, you got a chance to interact with your neighbors for the very first time. In a few cases, this helps your decision to want to move.

What does this mean for buyers and sellers?

With these factors in play, the demand for housing will keep growing this year, especially over the summer as more communities continue their phased approach to reopening. Buyers can take advantage of additional savings and low mortgage rates. And if you're thinking of selling, know that your home may be in high demand as buyer interest grows and the number of homes for sale continues to dwindle. 

Bottom Line

If you are ready to buy or sell - may both - reach out to a trusted local real estate professional to put your plans in motion. With low mortgage rates leading the way, it's a great time to take advantage of your position in today's market.

Scott's Advice

Buyers and Seller both win in the buyers' motivating factors I mentioned here in this blog. But you can't wait. As we speak, summer is upon us. Reach out to me for a visit on your first steps. Planning is the key and I have the plan for you. It just starts with one click. Start Here! 


Scott C. Dickinson is a real estate broker that lives with his wife in beautiful Vancouver, WA but helps people all over the US with their real estate needs. He can be reached by phone at
360-518-7197 or by email at ScottYourBroker@gmail.com. Check him out online at
https://linktr.ee/yourbrokerscott.