Why Homebuyers Have Stopped Looking

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Posted: Mar 31, 2020 12:12 PM
Why Homebuyers Have Stopped Looking
A survey by Point 2 Point Homes indicates a huge change in homebuyer sentiment.

Please consider the Point2Point Flash Survey on Homebuyer Sentiment.

Key Points

  • 19% percent are still determined to find a home.
  • 18% are searching but not as actively.
  • 22% have stopped until the outbreak is over and another 6% stopped searching for the time being. That's a postponement rate of 28%.
  • 35% claim to "not know" while "keeping an eye on the market".

The other 6% is a mystery.

The Point2Point article title says "U.S. Still Optimistic Despite Outbreak" but that is certainly not my takeaway from those stats.

How Soon?

To see the chart, click here.

That question does not tell us how the coronavirus impacted their timelines. The next question is better.

How Has Your Home Buying Process Changed?

To see the chart, click here.

Key Points

  • 42% say no changes
  • 27% want a cheaper home
  • 19% expect delays and a slowdown in all aspects
  • 10% are paying attention to health hazards
  • 2% may need financial health

That totals 100% which indicates survey flaws.

Clearly, someone might want a cheaper home and expect delays at the same time. That same group could also be paying attention to health hazards.

I see no indication that Point2Point allowed for multiple responses. One indication would be a total in excess of 100.

What is the Main Change in Home Selection Process?

To see the chart, click here.

Only 35% say their process has not changed.

Curiously, only 12% say they are putting the process on hold.

That is inconsistent with a 28% postponement rate (22% who stopped looking plus another 6% who stopped looking "for the time being").

That is not necessarily a polling flaw but it is a logical flaw in answers vs the first question.

Methodology

The 5-question survey was posted on the Point2 Homes website between March 23rd and 26th. There were 2900 usable answers. All percentages were rounded.

The answers are interesting but I question whether the approach constitutes a statistically valid, random sample.