To keep up with the rapid changes COVID-19 is having on the economy and housing market, the realtor.com® economics team provides a weekly video update on the relevant real estate and economic information you need to know to navigate the housing market in these challenging times.
This week, Senior Economist George Ratiu talks about the IMF’s updated global economic forecast for 2020, as well as the Bureau of Economic Analysis’s latest update to GDP. He also mentions the rebound in durable goods orders and the latest jobless claims numbers, which highlight lingering concerns about the economic recovery.
George offers an overview of this week’s housing data, including realtor.com® trends on new listings, sourced from the Weekly Housing Trends View. He also highlights new research from Economic Data Analyst Nicolas Bedo, pointing to a rebound in the luxury real estate segment. George talks about the continuing decline in inventory and drop in existing home sales, as well as the acceleration in asking prices. At the same time, consumers’ shifting preferences toward suburban markets and smaller towns are driving demand for new homes. He wraps up his remarks by mentioning that mortgage rates moved sideways this week, while mortgage applications declined.
Washington, D.C. – June 30, 2020 (nar.realtor) National Association of Realtors® President Vince Malta, together with Canadian Real Estate Association President Costa Poulopoulos and Asociación Mexicana de Profesionales Inmobiliarios President Roberto Barrios, reiterated their support of the new U.S., Mexico and Canada Trade Agreement after the White House announced steps to implement the deal will begin this week.
“Effective trade agreements keep the economy strong and help sustain resilient, mutually beneficial relationships between nations,” said Malta, broker at Malta & Co., Inc., in San Francisco, CA. “Implementation of the USMCA marks the beginning of a new chapter for North America, supporting more balanced trade, leading to freer markets and helping to facilitate robust economic growth and investment across the continent.”
The USMCA contains significant improvements and modernized approaches to policies governing rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor and others. Realtors® believe these enhancements will help create jobs, provide stronger labor protections and expand market access, generating new opportunities for American workers, farmers and small businesses.
The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
AARP Members Can Now Receive $300 to $5,500 When Buying or Selling Their Home with Participating Agents Affiliated with Realogy’s Trusted Family of Real Estate Brands
New Consumer Survey Reveals Current Home Buying Attitudes of the 50-Plus Population
Madison, NJ – June 30, 2020 (PRNewswire) Realogy Holdings Corp. (NYSE: RLGY), the largest full-service residential real estate services company in the United States, today announced AARP® Real Estate Benefits from Realogy, the first-ever real estate benefits program designed for the nearly 38 million AARP members, is now live. The new offering allows AARP members to receive $300 to $5,500 when buying or selling a home with a participating agent affiliated with one of Realogy’s trusted residential real estate brands, including Better Homes and Gardens® Real Estate, Century 21®, Coldwell Banker®, Corcoran® and ERA®.
AARP® Real Estate Benefits from Realogy was created to assist Americans age 50 and older – one of the largest groups of recent home buyers and sellers. The National Association of Realtors (NAR) 2019 Generational Trends Survey reported that nearly one-third of recent home buyers are baby boomers, with their home purchases primarily motivated by retirement, the desire for a smaller home or a need to be closer to friends and family.
“Realogy is committed to delivering high quality real estate services to our consumers during these difficult times,” said Katrina Helmkamp, President and CEO of Realogy Leads Team and Cartus. “The AARP Real Estate Benefits from Realogy program, paired with technology used for virtual home showings, is empowering Americans 50 and older to choose how and where they live, but also allowing us to serve them with our expertise even in times of uncertainty.”
“For many older Americans, relocating to a new home is part of a major life stage transition, such as retiring, downsizing or changing jobs,” said John Larew, AARP Services President & CEO. “The real estate program from Realogy is designed to help AARP members successfully navigate an important milestone in their lives while saving money in the process. It is part of AARP’s commitment to empowering people to choose how they live as they age.”
To support the launch of the program, Realogy commissioned a consumer survey in May among 1,106 American adults, examining opinions of the general American population as well as those specific to Americans ages 50 and older. The survey examined the changing home buying attitudes of Americans in the wake of COVID-19. As work, play and education turn to virtual means, the survey findings indicate increasing comfort with virtual tours and home inspections, including among Americans age 50 and older, along with a shift in American aspirations toward suburban living.
According to the survey, 82% of Americans 50 and older say that receiving an average of $1,2501 through a real estate cash benefits program would be at least somewhat meaningful. Americans 50 and older are more likely than Americans under 50 to say if they were to receive $1,250, the money would be put into an emergency savings fund (29% vs 22%). Additional findings from the consumer survey reveal a generational divide between those under the age of 50 and those 50+. Older Americans prioritize different things in the home, indicate different moving location preferences, and have different plans for how they would use additional monetary funds.
Consumer Survey Highlights – Home Buying and Selling During COVID-19
Virtual Tours and Inspections May Ease Home Buying Decision Making
Over half (59%) of Americans say they would be comfortable putting their home on the market for sale virtually, and more than a quarter (27%) of the 50+ Generation are comfortable buying a home having seen it only virtually and not in person.
Among Americans who are uncomfortable or only somewhat comfortable buying a home virtually, a majority say virtual tours of the home (59%), virtual home inspections (51%) and detailed neighborhood information and high-quality photos (46%) would ease their decision to buy a home virtually.
Americans 50+ Prioritize the Home Differently Amidst COVID-19
Comfort and Convenience Reign Supreme: Americans 50+ are more likely than Americans under 50 to say top priority features include: laundry in the home (69% vs. 52%), a patio / deck (56% vs. 39%), accessibility and convenience (46% vs. 25%) and an open layout (48% vs. 36%). Most Americans of all ages say a yard or access to outdoor space is a priority.
Sticking to TP: Only 9% of Americans 50+ say a bidet in the bathroom would be a priority.
Dreams of Urban Living Shift to the Suburbs
Among those who currently live in an urban area, nearly 40% are thinking about moving to a suburban or rural area in the future due to COVID-19.
67% of Americans ages 50+ say they plan to stay in the same type of area they live in now compared to 44% of Americans under the age of 50.
Americans ages 50+ are more likely than Americans under the age of 50 to say, based on living through COVID-19, the most ideal place to live when looking to move is a ranch or single floor home (48% vs 28%).
Retirement Still in the Cards?
Only 8% say that the coronavirus has caused them to move back their retirement date, while 3% say they plan to retire early. Over one-third (34%) of those surveyed say they have no current plans to retire.
Survey Methodology This survey was conducted by G&S Business Communications on behalf of Realogy. The survey was fielded on May 8-9, 2020, with a sample of 1,106 U.S. adults ages 18+.
*The cash back bonus is offered in most states. In some states a gift card or commission reduction at closing may be provided in lieu of the cash back bonus. The program is not available for employer-sponsored relocations or transactions in Iowa or outside the United States. The cash back bonus is not available in Alaska, Louisiana, or Oklahoma. In Kansas and Tennessee, a MasterCard MAX gift card will be issued. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. The cash back bonus is only available with the purchase and/or sale of your home through the use of a participating program real estate agent. The actual amount you receive is based on the purchase and/or sale price of your home. Participating program real estate agents are affiliated with the participating real estate brands: Coldwell Banker, Century 21, ERA, Better Homes and Gardens Real Estate, and Corcoran Group and all related logos are trademarks owned or licensed by Realogy Services Group LLC or its affiliated companies. All real estate commissions are negotiable. Other terms and conditions may apply. This is not a solicitation if you are already represented by a real estate broker. Please check with a program Advocate for details. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. Realogy Services Group LLC and its affiliated companies fully support the principles of the Fair Housing Act and the Equal Opportunity Act. Each Franchise brokerage office is independently owned and operated.
AARP member benefits are provided by third parties, not by AARP or its affiliates. Realogy pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates do not employ or endorse real estate agents or brokerages. Neither AARP nor its affiliates provide any real estate brokerage services. Some provider offers are subject to change and may have restrictions. Please contact the provider directly for details.
About Realogy Holdings Corp. Realogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of U.S. residential real estate services, encompassing franchise, brokerage, and title and settlement businesses as well as a mortgage joint venture. Realogy operates a diverse brand portfolio, featuring some of the most recognized names in real estate: Better Homes and Gardens® Real Estate,CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, and Sotheby’s International Realty®. Using innovative technology, data and marketing products, best-in-class learning and support services, and high-quality lead generation programs, Realogy fuels the productivity of independent sales agents, helping them build stronger businesses and best serve today’s consumers. Realogy’s affiliated brokerages operate around the world with approximately 188,900 independent sales agents in the United States and more than 122,400 independent sales agents in 113 other countries and territories. Recognized for nine consecutive years as one of the World’s Most Ethical Companies, Realogy has also been designated a Great Place to Work and one of Forbes’ Best Employers for Diversity. Realogy is headquartered in Madison, New Jersey.
About AARP AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.
About AARP Services Inc. AARP Services Inc., founded in 1999, is a wholly owned taxable subsidiary of AARP. AARP Services manages the provider relationships for and performs quality control oversight of the wide range of products and services that carry the AARP name and are made available by independent providers as benefits to AARP’s millions of members. The provider offers currently span health products, financial products, travel and leisure products, and life event services. Specific products include Medicare supplemental insurance; credit cards; auto, home, mobile home and motorcycle insurance; life insurance and annuities; member discounts on rental cars, cruises, vacation packages and lodging; special offers on technology and gifts; and pharmacy services. AARP Services also engages in new product development activities for AARP and provides certain consulting services to outside companies.
1 According to NAR, the median home sale price was $280,600 as of March 2020. The $1,250 represents the amount a home buyer or seller of a median priced home would receive if they participated in the AARP Real Estate Benefits Program from Realogy.
