{"id":476101,"date":"2021-04-14T08:04:12","date_gmt":"2021-04-14T12:04:12","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/what-to-expect-in-the-housing-market-after-the-pandemic\/"},"modified":"2021-04-14T08:04:12","modified_gmt":"2021-04-14T12:04:12","slug":"what-to-expect-in-the-housing-market-after-the-pandemic","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/what-to-expect-in-the-housing-market-after-the-pandemic\/","title":{"rendered":"What to Expect in the Housing Market After the Pandemic"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">Zillow survey results indicate many of the features that have marked the pandemic-era housing market &#8212; including heavy buyer demand, tech tool adoption and rising home prices &#8212; are likely to persist<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Strong demand for homes is likely to continue, but there may be little change in the locations and types of homes Americans prefer.<\/h2>\n<h2 class=\"xn-hedline\">&#8211; For-sale housing inventory should see a boost as vaccine distribution becomes more widespread &#8212; 53% of housing experts Zillow surveyed think inventory will begin growing sometime this year.<\/h2>\n<h2 class=\"xn-hedline\">&#8211; Digital tools that are making the home shopping experience easier and faster will continue to be in demand. About 79% of Americans say they would like to use 3D tours during their search.<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">SEATTLE<\/span>, <span class=\"xn-chron\">April 14, 2021<\/span> \/PRNewswire\/ &#8212;\u00a0The coronavirus pandemic has upended the housing market, <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=1312918818&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Ftelecommute-2-million-buyers-27866%2F&amp;a=opening+up+new+opportunities\" rel=\"nofollow noopener\">opening up new opportunities<\/a>\u00a0for many, pushing some to <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=1627051156&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fcoronavirus-adults-moving-home-27271%2F&amp;a=move+back+home\" rel=\"nofollow noopener\">move back home<\/a>\u00a0and causing others to <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=2333817229&amp;u=http%3A%2F%2Fzillow.mediaroom.com%2F2020-06-22-The-End-of-Open-Floor-Plans-How-Homes-Will-Look-Different-After-Coronavirus&amp;a=reevaluate+how+they+want+their+home+to+look\" rel=\"nofollow noopener\">reevaluate how they want their home to look<\/a>. With vaccines being widely distributed, new Zillow\u00ae surveys reveal what&#8217;s likely to change and what&#8217;s expected to remain when the pandemic ends.\u00a0<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/844956\/Zillow.html\" target=\"_blank\" rel=\"nofollow noopener\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/844956\/Zillow.jpg\" title=\"Zillow logo (PRNewsfoto\/Zillow Group)\" alt=\"Zillow logo (PRNewsfoto\/Zillow Group)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>&#8220;As the pandemic subsides and the economy begins to recover, lowered health risks and renewed homeowner financial confidence should bring more sellers to the market,&#8221; said Zillow economist <span class=\"xn-person\">Arpita Chakravorty<\/span>. &#8220;That increased inventory would ease buyer competition that has driven prices higher during the pandemic, but expect a steady pace of home value growth to persist into the near future. Mortgage rates have risen some but are still low by historical standards, adding to people&#8217;s purchasing power and helping to keep competition for homes revved up.&#8221;<\/p>\n<p>\n        <b>Telework is here to stay, which should continue to boost home buying demand&#8230;<br \/><\/b>An overwhelming majority (95%) of economists and real estate experts surveyed by Zillow as part of the <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=4028090325&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fzhpe-q1-2021-work-from-home-29311%2F&amp;a=Zillow+Home+Price+Expectations+(ZHPE)+survey\" rel=\"nofollow noopener\">Zillow Home Price Expectations (ZHPE) survey<\/a>\u00a0say an increased preference to work remotely at least part time is a permanent shift.<sup>i<\/sup> According to Zillow&#8217;s Ideal Home Survey, which asked adults to describe their ideal living situation, remote workers are more likely to consider moving because of the pandemic. Of employed people who work remotely at least one day a week, 23% said they are more likely to consider moving because of the pandemic \u2013 only 13% of employed people who always work at their employer&#8217;s location said the same.<sup>ii<\/sup><\/p>\n<p>With widespread teleworking expected to continue when the pandemic ends, boosted home buying demand thanks to the added flexibility offered by remote work is likely to persist &#8212; <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=385317176&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Ffebruary-2021-market-report-29173%2F&amp;a=Zillow+economists+expect+17.2%25+more+home+sales+this+year\" rel=\"nofollow noopener\">Zillow economists expect 17.2% more home sales this year<\/a>\u00a0than in 2020.\u00a0<\/p>\n<p>\n        <b>&#8230;but housing location and size preferences may return to pre-pandemic norms<br \/><\/b>Experts surveyed by Zillow were split on whether housing preference shifts during the pandemic will last. When asked about Americans&#8217; preference for living in the suburbs over urban areas, the same share of ZHPE panelists said the shift was permanent as said the shift was temporary (46%) &#8212; 8% said there has been no shift at all. The results were similar when asked whether consumer preference has changed in favor of proximity to smaller cities over larger cities, or larger homes in favor of smaller homes.\u00a0<\/p>\n<p>Zillow&#8217;s Ideal Home Survey results show no change in the size of Americans&#8217; ideal home since last year. According to the survey, Americans prefer a 2,000-square-foot home with three bedrooms and two bathrooms &#8212; the same as when surveyed a year ago.<\/p>\n<p>\n        <b>More homes will come onto the market to help meet demand<br \/><\/b>In today&#8217;s frenzied housing market, buyers are often <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=3735393926&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fmarket-speed-sales-inventory-2020-28762%2F&amp;a=plucking+homes+off+the+market+just+days+after+they+are+listed\" rel=\"nofollow noopener\">plucking homes off the market just days after they are listed<\/a>, thanks in part to technology that&#8217;s making home buying and selling faster and easier. The speed at which homes are selling is one factor contributing to low inventory, which has steadily declined during the pandemic and now sits 30% lower than a year ago.\u00a0<\/p>\n<p>A majority of ZHPE panelists (53%) expect inventory will begin to grow again this year, likely during the second half of 2021. An increase in existing homes being listed for sale is expected to be the biggest factor in the reversal, with 38% of panelists saying that is the most likely catalyst for inventory growth.\u00a0<\/p>\n<p>Previous Zillow research supports this belief. Homeowners representing eight million households say they&#8217;re <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=147019088&amp;u=https%3A%2F%2Fwww.zillowgroup.com%2Fnews%2Fmover-report%2F&amp;a=more+likely+to+move+and+sell+their+home+as+a+result+of+the+pandemic\" rel=\"nofollow noopener\">more likely to move and sell their home as a result of the pandemic<\/a>, and widespread coronavirus vaccine distribution will make homeowners in <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=760024436&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fcovid-vaccine-housing-market-29008%2F&amp;a=14+million+households+feel+comfortable+moving\" rel=\"nofollow noopener\">14 million households feel comfortable moving<\/a>\u00a0who don&#8217;t necessarily feel that way now.\u00a0<\/p>\n<p>&#8220;As the economy continues to recover, more potential sellers will enter the market as they gain confidence in their employment,&#8221; said <span class=\"xn-person\">Samer Kuraishi<\/span>, president and founder at The ONE Street Company in <span class=\"xn-location\">Washington, D.C.<\/span> &#8220;It&#8217;s been tough on homeowners who want to sell but might have lost their job, or cannot work remotely. Increased employment stability will only raise confidence and push people off the sidelines. While we have optimism about April and the summer, our work with clients will remain the same: arm, educate, and empower them to learn the market and understand the road ahead.&#8221;<\/p>\n<p>\n        <b>Home prices will continue their climb<br \/><\/b>Strong competition for available homes pushed up prices last year &#8212; the typical home <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=3087419361&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fzillow-december-2020-market-report-28684%2F&amp;a=appreciated+by+more+than+%2420%2C000+in+2020\" rel=\"nofollow noopener\">appreciated by more than <span class=\"xn-money\">$20,000<\/span> in 2020<\/a>. Even with an expectation for more inventory to help meet buyer demand, ZHPE panelists on average expect home prices to grow 6.2% in 2021 &#8212; a full two percentage points higher than when they were surveyed in Q4 2020 &#8212; and several panelists call for double-digit price growth this year.\u00a0<\/p>\n<p>&#8220;This is the most bullish near-term outlook for home prices we&#8217;ve seen from our experts since the early stages of the post-bust recovery, and the panel&#8217;s five-year average annual home price forecast has never been more optimistic,&#8221; said <span class=\"xn-person\">Terry Loebs<\/span>, founder of Pulsenomics. &#8220;In the wake of last year&#8217;s heady home equity gains, these new projections indicate that the aggregate value of homes across the country will increase by another <span class=\"xn-money\">$2 trillion<\/span> in 2021. This is great news for existing homeowners, but even with a robust economic rebound in the coming months affordability will likely remain a challenge for many aspirational renters looking to move into homeownership this year.&#8221;<\/p>\n<p>\n        <b>Buyers will continue to want digital tools that make home shopping easier<br \/><\/b><br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=2508295468&amp;u=https%3A%2F%2Fwww.zillowgroup.com%2Fnews%2Fhow-to-search-zillow%2F&amp;a=%22Zillow+Surfing%22\" rel=\"nofollow noopener\">&#8220;Zillow Surfing&#8221;<\/a>\u00a0has surged during the pandemic as home shoppers and daydreamers use Zillow as a new form of escapism. Real estate technology, like <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=468865229&amp;u=https%3A%2F%2Fwww.zillow.com%2Fz%2F3d-home%2F&amp;a=Zillow%27s+3D+Home+tours\" rel=\"nofollow noopener\">Zillow&#8217;s 3D Home tours<\/a>, are making home shopping easier and faster and can give home shoppers an experience similar to an in-person tour from their couch hundreds or thousands of miles away. Nearly 60% of <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=1703347766&amp;u=http%3A%2F%2Fzillow.mediaroom.com%2F2021-03-10-Nearly-40-of-Millennials-are-Comfortable-Buying-a-Home-Online&amp;a=millennials+say+they+would+be+at+least+somewhat+comfortable+making+an+offer+on+a+home+without+touring+in+person\" rel=\"nofollow noopener\">millennials say they would be at least somewhat comfortable making an offer on a home without touring in person<\/a>\u00a0if they&#8217;ve viewed a virtual tour, and almost 40% even say they would be comfortable buying a home online.<\/p>\n<p>Demand for these tools is expected to continue once the pandemic ends. One in three respondents to a <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=4291535448&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fonline-buying-selling-27568%2F&amp;a=Zillow+survey\" rel=\"nofollow noopener\">Zillow survey<\/a>\u00a0say they would prefer taking a virtual or video home tour instead of touring a home in person after the pandemic, a departure from traditional shopping behavior. And <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=2534798329&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Fdigital-tools-millennials-29101%2F&amp;a=79%25+of+Americans+say+they%27d+like+to+view+a+3D+virtual+tour\" rel=\"nofollow noopener\">79% of Americans say they&#8217;d like to view a 3D virtual tour<\/a>\u00a0while shopping for a home.\u00a0<\/p>\n<p>The results achieved from listings using these technologies support the preferences stated by consumers in the survey. From <span class=\"xn-chron\">March 2020<\/span> through <span class=\"xn-chron\">February 2021<\/span>, for-sale home listings on Zillow with a Zillow 3D Home tour were viewed 65% more and favorited (saved) 75% more than for-sale home listings without a Zillow 3D Home tour.<sup>iii<\/sup> Listings with a Zillow 3D Home tour sold, on average, 10% faster than listings without.<sup>iv<\/sup><\/p>\n<p>\n        <b>Buyers gravitate toward waterfront living<br \/><\/b>Zillow&#8217;s Ideal Home Survey found a notable increase in people who say their dream location is near the water. More people say their ideal home would be on or near a beach (21%, up from 17% in 2020) or a lake (16%, up from 12%) than last year.<\/p>\n<p>\n        <b>The kitchen cements itself as the most important room in a home<br \/><\/b>A large kitchen is the home feature the most people say they couldn&#8217;t live without, according to Zillow&#8217;s Ideal Home Survey. Seventy percent of those surveyed said a large kitchen is extremely or very important, edging out a large ensuite bathroom (68%), walk-in closet (63%) and a patio or deck (62%) as the must-have feature in their ideal home.\u00a0<\/p>\n<p>It&#8217;s even more indispensable for those who say they&#8217;re more likely to move because of the pandemic &#8212; 78% of them say a large kitchen is extremely or very important, more than those who are less likely to move.<\/p>\n<p>Buyers are often willing to pay a premium for the kitchen of their dreams. Among the 10 <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=1571533881&amp;u=https%3A%2F%2Fwww.zillow.com%2Fresearch%2Ffeatures-that-sell-2021-pandemic-29109%2F&amp;a=features+most+often+mentioned+in+listings+that+sold+for+more+than+expected\" rel=\"nofollow noopener\">features most often mentioned in listings that sold for more than expected<\/a>\u00a0during the pandemic in 2020, six are kitchen-related. Steam ovens were the most-coveted feature of the year, associated with a 4.9% sale premium.\u00a0<\/p>\n<p>Only 25% said a pool is extremely or very important in their ideal home &#8212; perhaps because they&#8217;re dreaming of swims in the ocean or lake instead.\u00a0<\/p>\n<p>\n        <b>About<\/b><br \/>\n        <b>\u00a0Zillow Group<br \/><\/b>Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life&#8217;s next chapter.\u00a0<\/p>\n<p>As the most-visited real estate website in <span class=\"xn-location\">the United States<\/span>, Zillow\u00ae and its affiliates offer customers an on-demand experience for selling, buying, renting or financing with transparency and nearly seamless end-to-end service. Zillow Offers\u00ae buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline. Zillow Home Loans\u2122, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase. Zillow recently launched Zillow Homes, Inc., a licensed brokerage entity, to streamline Zillow Offers transactions.\u00a0\u00a0<\/p>\n<p>Zillow Group&#8217;s brands, affiliates and subsidiaries include Zillow\u00ae, Zillow Offers\u00ae, Zillow Premier Agent\u00ae, Zillow Home Loans\u2122, Zillow Closing Services\u2122, Zillow Homes, Inc., Trulia\u00ae, Out East\u00ae, StreetEasy\u00ae and HotPads\u00ae. Zillow Home Loans, LLC is an Equal Housing\u00a0Lender, NMLS #10287 (<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=506026706&amp;u=http%3A%2F%2Fwww.nmlsconsumeraccess.org%2F&amp;a=www.nmlsconsumeraccess.org\" rel=\"nofollow noopener\">www.nmlsconsumeraccess.org<\/a>).\u00a0<\/p>\n<p>\n        <b>About Pulsenomics<br \/><\/b>Pulsenomics LLC (<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3128398-1&amp;h=2079899201&amp;u=http%3A%2F%2Fwww.pulsenomics.com%2F&amp;a=www.pulsenomics.com\" rel=\"nofollow noopener\">www.pulsenomics.com<\/a>) is an independent research firm that specializes in data analytics, opinion research, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey\u2122, The U.S. Housing Confidence Survey, The Housing Confidence Index, and The Transaction Sentiment Index. Pulsenomics\u00ae , The Housing Confidence Index\u2122, The Transaction Sentiment Index\u2122, and The Housing Confidence Survey\u2122 are trademarks of Pulsenomics LLC.<\/p>\n<p>\n        <sup>i<\/sup> This edition of the Zillow Home Price Expectations Survey surveyed 110 experts between <span class=\"xn-chron\">February 15, 2021<\/span> and <span class=\"xn-chron\">March 1, 2021<\/span>. The survey was conducted by Pulsenomics LLC on behalf of Zillow, Inc. The Zillow Home Price Expectations Survey and any related materials are available through Zillow and Pulsenomics.<br \/><sup>ii<\/sup> Zillow Group Population Science collected a nationally representative sample of more than 1,000 Americans. Fielded <span class=\"xn-chron\">between March 1 and March 7, 2021<\/span>, the survey asked participants questions about their ideal home, including details like size, layout, and location. In previous years, HarrisPoll fielded this survey for Zillow Group; to maintain year-over-year comparability, the ZG Population Science survey used the same questions developed by HarrisPoll. The 2021 survey also asked participants new questions about remote work and their likelihood of moving because of the pandemic.<br \/><sup>iii<\/sup> Daily average.<br \/><sup>iv<\/sup> Based on data collected <span class=\"xn-chron\">Dec 2019<\/span> &#8211; <span class=\"xn-chron\">May 2020<\/span>.<\/p>\n<p>\u00a0<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\"><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=SF41932&amp;sd=2021-04-14\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/what-to-expect-in-the-housing-market-after-the-pandemic-301268452.html\">http:\/\/www.prnewswire.com\/news-releases\/what-to-expect-in-the-housing-market-after-the-pandemic-301268452.html<\/a><\/p>\n<p>SOURCE  Zillow<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=SF41932&amp;Transmission_Id=202104140800PR_NEWS_USPR_____SF41932&amp;DateId=20210414\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zillow survey results indicate many of the features that have marked the pandemic-era housing market &#8212; including heavy buyer demand, tech tool adoption and rising home prices &#8212; are likely to persist &#8211; Strong demand for homes is likely to continue, but there may be little change in the locations and types of homes Americans prefer. &#8211; For-sale housing inventory should see a boost as vaccine distribution becomes more widespread &#8212; 53% of housing experts Zillow surveyed think inventory will begin growing sometime this year. &#8211; Digital tools that are making the home shopping experience easier and faster will continue to be in demand. About 79% of Americans say they would like to use 3D tours during their search. PR &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/what-to-expect-in-the-housing-market-after-the-pandemic\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What to Expect in the Housing Market After the Pandemic&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-476101","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What to Expect in the Housing Market After the Pandemic - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/what-to-expect-in-the-housing-market-after-the-pandemic\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What to Expect in the Housing Market After the Pandemic - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Zillow survey results indicate many of the features that have marked the pandemic-era housing market &#8212; including heavy buyer demand, tech tool adoption and rising home prices &#8212; are likely to persist &#8211; Strong demand for homes is likely to continue, but there may be little change in the locations and types of homes Americans prefer. &#8211; For-sale housing inventory should see a boost as vaccine distribution becomes more widespread &#8212; 53% of housing experts Zillow surveyed think inventory will begin growing sometime this year. &#8211; Digital tools that are making the home shopping experience easier and faster will continue to be in demand. About 79% of Americans say they would like to use 3D tours during their search. 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