House hunters are reportedly placing a higher priority on properties with a pool during the COVID-19 pandemic. Searches for single-family homes on Compass’ website for homes with pools are up threefold, Robert Reffkin, CEO of Compass, told CNBC’s “Squawk Alley.”

Further, listings showing off outdoor space appear to be more in demand with home buyers lately. Reffkin also said that searches at Compass’ site for homes with outdoor spaces have doubled since the pandemic began.

Indeed, a survey of 1,300 homeowners from realtor.com®at the end of April showed that a backyard was becoming more important after the beginning of sheltering in place in many areas. Since sheltering began in March, some homeowners have placed greater value on the quietness of a neighborhood and the outdoor space of their home.

A report from The New York Times this week said that homeowners are paying more attention to sprucing up their backyards, with fire pits, play sets, bounce houses, basketball hoops, and more to help keep children better entertained at home. Also, outdoor kitchens, in-ground pools, hot tubs, and cabanas are catching shoppers’ eyes, The New York Times reports.

Homeowners are viewing their homes in a new light after stay-at-home orders during the pandemic have left them spending most of their time at home. “They’re evaluating, do they have enough space inside, outside? Do they have enough light? Do they have the right home office?” Reffkin said. “If the answer to those questions are no, they call their agent.”

What Owners Like, Dislike About Their Homes When Sheltering

Reffkin said his firm has noticed searches for single-family homes at Compass’ site jumped 40%, while listings for condos and co-ops have fallen. “I think this is going to be a continuous shift until there’s a vaccine,” Reffkin told CNBC.

He said that searches are shifting to less dense areas, and minimum square-foot space requirements are also on the rise, up about 10% compared with before the pandemic.

Source: “Searches for Homes With Pools Are Rising During Pandemic, Real Estate Brokerage CEO Says,” CNBC.com (May 20, 2020) and “Turning Your Backyard Into a Vacation Spot,” The New York Times (May 22, 2020)

Homebuilders believe building homes to rent could help respond to housing affordability and down payment challenges in the real estate market, particularly in response to the COVID-19 pandemic.

The single-family built-for-rent market has “received attention as a means to add single-family inventory amid concerns over housing affordability and down payment requirements in the for-sale market, particularly during a period involving elevated unemployment and weak wage growth,” the National Association of Home Builders reports on its Eye on Housing blog.

The SFBFR market saw a small year-over-year increase in the first quarter of 2020, despite a challenging market, the NAHB notes. There were about 8,000 single-family homes built with the intent to rent them out during the first three months of the year. That still represents a small share of the new-home market, but housing analysts note it’s significant because the share has been increasing.

During the Great Recession, the share of built-for-rent homes also increased in response to market conditions.

“A window of opportunity now exists” for the sector, the NAHB notes on its blog. “As some households seek lower density neighborhoods and single-family residences, but must do so from the perspective of renting, the SFBFR market will likely expand in the quarters ahead.

”Source: “Gains Expected for Single-Family Built-for-Rent Construction,” National Association of Home Builders’ Eye on Housing blog (May 21, 2020)

Homeowners trying to sell during the pandemic will likely need some patience and a degree of expectation that the process could take longer. Homes are taking about an average of 15 days more to sell—or about 27% longer—than a year ago, according to realtor.com®’s data reflecting the week ending May 16. This marks the largest increase in the number of days that homes have spent on the market since 2013.

Days on the market have been gradually increasing since the pandemic began. During the first two weeks of March, prior to the outbreak’s growth in the U.S., homes were selling four days faster than a year ago.

“Mid-May is normally the time of year when homes sell the fastest,” says Danielle Hale, realtor.com®’s chief economist. “Today’s median time on the market is more like what we usually see in late February or November.”

But stay-at-home orders and unemployment have prompted a slowdown in the market. The National Association of REALTORS® reported on Thursday that existing-home sales dropped 17.8% in April compared to March. Many economists view the sales slump as temporary, particularly given the sudden uptick in mortgage applications for home purchases.

Prices Strong Despite Lockdowns Hindering April Sales

Mortgage Applications Continue Surprising Rebound

But, while days on the market have increased, consumers shouldn’t assume it’s a buyer’s market now, housing analysts say. Home prices are staying firm. NAR reports that existing-home prices for all housing types jumped 7.4% in April compared to a year ago.

“This may be surprising to a lot of people,” Hale says.

But a tight inventory of homes for sale persists. The number of new listings dropped 39% year over year for the week ending May 2.

Hale predicts that days on the market will drop again in the late summer as more cities loosen restrictions and more potential buyers return to work.

Source: “Home Sellers Should Channel Patience as Time on Market Shoots Up During the Crisis,” realtor.com® (May 21, 2020)