Zillow: Homebuying Changed In 2022 - Will The Metaverse Upend The Process Even More?

Between the Covid-19 pandemic and recent macroeconomic headwinds, homebuyers’ preferences are changing. 
According to a recent Zillow Group Z survey, fielded between March and July 2022, prospective buyers and successful buyers have similar preferences for virtual tours and digital floor plans.

Amongst prospective buyers and successful buyers, 68% and 66% of respondents, respectively, said that they would benefit from 3D tours that would help the buyer get a better feel for the space than static photos.

Since Meta Platforms META acquired Oculus VR headsets back in March 2014 for roughly $2 billion (some reports say it was $3 billion), virtual 3D tours became a big thing in real estate. Why? Generation Z and millennials are digitally native, compared to older generations who prefer to see their potential home in person.

See Also: Is This Really A Good Time To Invest In A Home?
The survey, which collected responses from 7,100 prospective buyers, also reported that 54% of prospective buyers tend to be more relaxed than 42% of successful buyers. Successful buyers were more likely to report a short or medium timeline to buy a home.

As younger generations enter the housing market, it is important to take your time and do your research before investing in a home for your future.

This can be attributed to 86% of prospective buyers saying that they intend to use their new home as their primary residence, Zillow reported.

Zillow also reported that 69% prospective buyers look for home sales online on websites such as Zillow and Redfin RDFN, while being less likely to make an offer or go on a home tour.

See Also: CPI Shows Rents Are Rising, Zillow Forecasting Drop In 2023; Professor Says Fed's Powell Will 'See The Light'

Although 25% of prospective buyers reported to have been pre-approved, 63% intend to finance their home purchase with a mortgage or home loan, per Zillow. Of these prospective buyers, Zillow reported that 20% are expecting to make a mortgage down payment of more than 23%, while successful buyers tend to put down 20%.