What's Trending During COVID-19

With the housing market reaching an all out frenzy here in Long Island many people are making the decisions move sooner rather than later.  The decision to make a move NOW while values are at an all time high seems to be at the top of everyone's minds and the unknowns of the market after elections leaves unanswered questions.  I recently attended a webinar hosted by Dr. Jessica Lautz, V.P. of Demographics and Behavioral Insights with the National Association of Realtors (NAR). It was an informative and educational expose on what we see happening here in NY in the explosive market that has taken place since the loosening of the restrictions set in place by the pandemic.

According to NAR's research the median days on the market here in New York,  in the four weeks prior to September 6th, was 16 days.  I believe here in most parts of Long Island that number is far less.  We frequently see homes on the market and within 2/3 days there are multiple offers sometimes going as much as $70,000 over the asking price!  

Some highlights from the study are;

• *55% of buyers are ready and willing to go to open houses while 17% would not be comfortable attending until a vaccine is approved
• *22% of buyers are recently active, meaning they are out actively searching for their homes.
• *63% of buyers are ready to tour homes through means other than open houses and are looking to make appointments which are following the strict requirements set forth  in order to see these houses. Did you know that in order to see a home a buyer must sign and acknowledge 4 separate forms and most seller are requiring proof of a pre-approval in writing before permitting entrance into their homes.  The buyers are ready, willing and able to do what is required.

What are these buyers looking for in today's COVID market here on Long Island?  The following is what we are seeing on a daily basis and at the same time home prices have continued to rise.

Trend #1 ~ buyers are considering a second home. Nearly 1/3 of people are considering a second home.  Why?  because as long as there is bandwidth for wifi people have been able to work anywhere.  Schools have been remote so why not enjoy the surroundings and get out in the world rather than sit behind a desk all day.  The news featured a group of college who kids took their semester to Barbados and rented a house together instead of paying dorm fees.  Why not? The same is true for people considering a 2nd home. Why not get the mountain house or beach house now, with great rates and the freedom of working from anywhere it is a current trend in our market.  

Trend # 2 ~ there is a shift to multi family residences. With the lock down of nursing homes it was nearly impossible for people to see their loved ones and we have seen an uptick in folks looking to combine the extended family.  For example, grandparents who may be required to care for grandchildren while parents have to work and children are virtual learning.  Also some grown children who migrated during their young careers into the city and subsequently came home during the quarantine have not returned to urban apartments.  Families are choosing larger homes with appropriate living spaces for multiple generations.

Trend # 3 ~ there is a shift from city centers to the suburbs. Buyers who were originally considering only Nassau County extended the search areas into Suffolk County.   The commute to the city is longer but as more people are working remotely the daunting long commute is not as relevant as it once was. Some employees are only anticipating returning to offices a few times a week as opposed to every day and therefore it has become more appealing to live closer to green space and beaches.  

Trend # 4 ~ there is a need for home office space. It seems like a no brainer but few of the homes in Long Island which were typically built in the 1950's through the 1970's were built with office space.  Therefore, homes that were renovated or extended through the years move much faster on the market if there is room for a home office.  The open floor plan seen as so highly coveted in past years has slowed down and people are looking to be able to close doors for privacy when they are working remotely.  

Trend # 5 ~ there is a need for more yard space. Did you know that dog adoptions went viral?  People are spending more time at home and are willing to take on the puppy that they always wanted but never adopted because they didn't want to leave the pup at home while away at work.  There was also a rise in gardening.  The trend of growing organic vegetables exploded this season as well as people tending to their flower beds and enjoying the peace and serenity of private outdoor space.

Trend # 6 ~ the need for a pool.  In the heat of the summer with public pools closed homes with private pools became highly desirable.  Pool companies are booked solid through next year.  Parents want their children to be able to play and enjoy their friends in a controlled environment and adults want to be able to exercise.  

These are what we see as the current market trends here in Long Island.  If you are on the fence about doing any home renovations to make yourself more appealing in today's marketplace I hope this blog helped you make some decisions.