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How Did the Coronavirus Impact Homebuyer Sentiment?

Summary:
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? ​That question does not tell us how the coronavirus impacted their timelines. The next question is better. How Has Your Home Buying Process Changed? ​ Key Points 42% say no changes 27% want a cheaper home 19% expect delays and a slowdown in all aspects 10% are

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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?

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

How Has Your Home Buying Process Changed?

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?

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.

Mike "Mish" Shedlock

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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