Buyers and sellers have been driven by the desire to be close to family and friends 2021-11-16
Gulf Coast Real Estate Update
November 16th, 2021
Family, Larger Homes Driving Moves
More Americans are showing a desire to move closer to their family and friends since the pandemic. Eighteen percent of buyers said they wanted to move closer to family, friends, and relatives, and 17% of repeat buyers also desired a larger home, according to the report. In previous years, consumers’ top motivators to move were greater convenience to work and affordability. But home preferences are changing. “During the pandemic, buyers and sellers have been driven by the desire to be close to family and friends, as well as the need for a larger home,”
Source: 2021 Profile of Home Buyers and Sellers, an annual report published by the National Association of REALTORS®,
More Homeowners Plan to Sell Their Homes in Next 12 Months
In September and October, REALTOR.COM surveyed 1,300 consumers about their homeownership status, and found that 26% of homeowners surveyed plan to sell their home in the next 12 months. Younger generations seem to be more eager to sell as 34% of Gen Z homeowners and 49% of millennial homeowners plan to sell, while only 26% of Gen X homeowners, 11% of Baby Boomers, and 8% of the Silent Generation plan to do the same. Interestingly, 29% of Gen Z homeowners and 54% of millennial homeowners have also sold a home in the last 6 months, compared to 22% of all homeowners, and only 4% of Baby Boomers and 3% of the Silent Generation homeowners. Selling is more popular in urban areas, with almost half (46%) of urban homeowners planning to sell while only 19% of suburban and 11% of rural homeowners plan the same.
Mortgage Rates Drop Below Three Percent Again
Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week. These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for homebuyers.
