ST. LOUIS–A new survey suggests recent homebuyers have experienced COVID-19-induced fears.
While many pre-pandemic buyers have lost significant portions of their household income and are facing unexpected financial hardships, in releasing the findings of its new research Clever Real Estate noted many buyers continue to show interest in the housing market in spite of stricter standards, with data from the Mortgage Bankers Association showing home buying interest remains strong.
In its new survey of 1,000 homeowners, conducted May 31 through June 2, who purchased their home between January and May of 2020, respondents were asked about their current finances, mortgage, and how they felt about homeownership.
“Recent home buyers have had very different experiences than those who purchased their homes before the pandemic,” the company said. “Most notably, they experienced more negative affects related to homeownership, higher levels of buyer's remorse, and more concerns about finances than those who bought between 2015 and 2019.”
The Findings
Among the survey findings:
· 2020 home buyers are more than twice as likely to report feelings of anxiety and stress than home buyers who bought in the last five years, and they're less likely to report feelings of comfort, security, happiness, and pride
· Roughly 75% of 2020 home buyers reported feeling concerned about paying their mortgage due to COVID-19-related financial hardships.
· In spite of COVID-19 fears, it's still a seller's market. 42% of homeowners who bought during the pandemic reported entering a bidding war
· 55% of 2020 home buyers reported that at least one person who typically contributes financially to housing costs has lost their job since purchasing their home
· 63% of home buyers who bought in the beginning of 2020 reported being concerned about their home going underwater compared to 53% of people who bought during the pandemic
· 37% of recent homeowners have taken out more than $2,000 in non-mortgage debt since purchasing their home
· Nearly one-quarter of recent buyers have less than $1,000 in emergency savings
· 23% of home buyers who bought during the pandemic reported never entering the home in person, only viewing photos or doing a virtual tour
· Regrets of homeownership are largely related to worries about the value of one's home as a result of the pandemic
For more info: https://listwithclever.com/covid-19-induced-fears/