The pandemic has upended many aspects of life and changed our way of living. A study conducted by Katherine C. Haydon sought to analyze how the virus has changed our ways of living. The study found that people who had a negative COVID-19 experience were more likely to bear a heavier burden during the pandemic. Mindsets started to change as many people became more depressed. We have turned the corner on the virus, but some changes we made to adapt will remain with us forever. This is especially true when it comes to real estate. The pandemic changed how people thought about their homes and what they wanted in a house. Many of these changes will remain with us long after the virus is gone. The team at Peoples Choice Mortgage is here to look at some of the pandemic home buying trends that have some staying power.

Home Buyers are Prioritizing Outdoor Spaces

As the pandemic went along, science started to tell us that it was safer to congregate with our friends and loved ones in outdoor spaces. To accommodate this home buyers started looking for places with large yards. They also started to look for features that aided entertaining outside, such as decks or elaborate patios. Buyers started to fall in love with extravagant backyards that are reminiscent of large living rooms. Backyards became a safe space within the pandemic because homeowners were encouraged to socialize outside. Given the world has to adapt to the new virus, it is only natural for home buyers to prioritize safety. Buying a home with a great backyard is the perfect opportunity to adjust to a new, safe lifestyle. Larger backyards also mean more to existing homeowners. Some homeowners are even willing to refinance their home loans to improve their outdoors spaces. 

Home Buyers Need Space to Work From Home

Homebuyers also have to consider their home as a new place to work. We can expect to work from home for a while. The dawn of the pandemic forced companies to make their employees work from home as a safety precaution. Although the pandemic is waning, companies plan on continuing working from home or introducing a hybrid structure. Most major companies like Facebook, Google, Twitter, Square, and Amazon are continuing to work from home. Their strong presence sets a precedent for others to continue working in the comfort of their home. Many workers are happy to stay working at home, but some worry that new professionals will have trouble creating connections at work. 

The new shift to working at home means that people need an office space. Homeowners and homebuyers will be considering if their home has the capability to house a comfortable office. A nice, quiet space to focus in a home will be essential for entering the market. This was also exacerbated by virtual schooling, where children also needed a learning space. Buying a home now involves being considerate of your working space while also thinking about your children and their working space. Even if it means taking out a larger mortgage, it makes sense for many because you are buying a home and an office. 

Vacation Homes Gain Importance

As the pandemic gained traction, travel was restricted, or at the very least, it was a lot more difficult. For those who were able, buying a vacation home was a solution. It was the perfect way to balance out the need for vacations with the restrictions of the pandemic. Vacation home sales surged throughout the pandemic. Prior to the pandemic, the question of whether to buy a vacation home was tempered by one’s ability to spend time there. However, the rise of working from home meant that you no longer had to be tethered to the city where you work. You could just as easily work from the countryside or the beach as long as you have decent internet access. 

With America allowing people to travel in the state and out of state to certain areas, the culture of travel is changing. The ability to work from home in the pandemic has blurred the lines between travelling, working, and living. The ability to work at home allows workers to live virtually anywhere, opening up possibilities for constantly travelling. Events like vacations or taking a trip assume a new meaning when you are able to still do your work. Airbnb, a popular source for finding places to stay, is becoming more versatile because of this. Your vacation home can take place in many ways, and remote work has opened new doors for work and travel.

High-End Homes Selling Faster

The desire for more space inside and outside of your home, alongside the need to stay home more, has changed the market. People are now buying higher end homes as a result. Higher end home purchases jumped 26% in the three months ending April 30. This is opposed to only a 15% increase in purchasing mid priced homes. Writers Stephen M. Poland and Mark Levine predicted the fall of the starter home, a cheaper option within a lower budget range. They argue that it is easier to save money by just going straight for your dream home. Millennials are particularly living large, representing 38% of homebuyers in the US. Skipping starter homes and going right to luxury homes seems more affordable now because of low mortgage rates. Even with high home prices, luxury homes are seen as a value because of how low mortgage rates impact overall home loan totals. 

Virtual Reality Homes Are On The Rise

With Mark Zuckerberg’s recent announcement about the Metaverse came a curiosity for the housing market in the future. People are starting to purchase homes online through virtual reality with real money. Investors are starting to buy the virtual properties following the announcement of the Metaverse. Although highly speculative and risky, investors do have  reason to believe that it may be a good idea to invest here. Many concerts have become virtual and games are also pushing towards that direction. While it is not a big impact now, it shows the innovation that took place as we were locked in our homes. 

Final Thoughts

The coronavirus has changed the way work and travel operates, and our new lifestyle is here to stay. With work being more remote, choosing a home becomes an even more important task for families to take on. When buying a home, you have to consider how well it allows for social activities to take place. You also have to consider if the home is a good fit for you to work in. If you have a child or children, they may also need a work space for virtual schooling. 

Purchasing a home during these unprecedented times doesn't have to be as hard as it is. If you are considering a new home or have any questions about the process, contact us! The team at Peoples Choice Mortgage is here to help you through every step of the way. We will help you get your dream home that allows you to live your best life in the pandemic.