Anecdotally, we have heard homebuyers are giving up commute time, extra outdoor space, or even privacy by mean of taking on extra roommates in order to buy a home that doesn’t break the bank. In the latest ValueInsured Modern Homebuyer Survey conducted in the last week of October 2017, we asked interested homebuyers what they are least willing to give up in a new home.
Overall, Americans are least willing to give up the following home attributes, even if their home purchase budget is strained
As seen as The Lede on MBA Newslink
It's a seller's market thanks to low inventory, but ValueInsured, Dallas, said many would-be sellers are hesitating to sell because of the high price they'd have to pay for their next home.
The company's quarterly Modern Homebuyer Survey reported 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home "in the near future," up 8 percentage points from last quarter.
But many aren't selling, said ValueInsured CEO Joe Melendez. "Homeowners in many cases are eager to sell but don't want to become buyers," he said. "These homeowners have experienced a lot of home value volatility and see more uncertainties looming--tax reform, for example. By hesitating, these homeowners are actually controlling the market on both sides. Reassuring these individuals is the key to unlocking inventory."
Three in Five Would-Be Sellers Waiting for Prices to Settle, According to the Latest ValueInsured Modern Homebuyer Survey
It’s a seller’s market thanks to low inventory, but according to ValueInsured’s latest quarterly Modern Homebuyer Survey, many would-be sellers are hesitating to sell because of the high price they’d have to pay for their next home.
The survey, released today, found that 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home “in the near future,” up 8 percentage points from last quarter.
A recent August survey by Freddie Mac found 3 in 4 renters (76%) now believe renting is more affordable than owning a home, up from 68% in March. The survey also reported that 63% of young Millennials ages 21-27 said renting fits their current lifestyle.
ValueInsured through its Modern Homebuyer Survey has been asking similar questions quarterly to gauge desire and preference in buying versus renting. While the desire to own a home remains high among all Americans, including Mllennials, ValueInsured’s researchers have noticed a similar drop in positive attitudes toward buying.
Millennials are living at home longer to avoid paying high rent or to save for their own down payment. This is not news. Millennials are even asking their parents to refinance their own home in order to help with all-cash offers to win bidding wars. You may have already heard about this one also.
But did you know that Millennials are hardly alone, at least when it comes to receiving home-buying assistance from family. In ValueInsured’s latest Modern Homebuyer Survey, it is reported that nearly 1 in 4 interested homebuyers plan to seek down payment help from a family member. What’s more interesting is that the pattern is near universal, across demographic segments.
It is not a surprise that a minority yet still sizeable share of homeowners in ValueInsured’s latest Modern Homebuyer Survey express less than fair level of confidence that they could sell their home for the same or more than what they paid for. Overall, homeowners’ confidence level is high. Nationally, 72% of all homeowners are confident their home has retained or increased in value since they bought it. There are, however, segments of homeowners that show lower level of confidence.
In recent weeks, we are beginning to see “unexpected” housing headlines that are not quite rosy: U.S. existing home sales unexpectedly fall in July, Sales of new homes drop 9.4%, decline way exceeds expectations, Pending home sales drop 2.6% in August; top Realtors economist warns housing market "stalled". Home prices are still up nationally and way up in some hot markets such as Seattle and Denver, but analysts are starting to report “warning signs”. Just this week, CoreLogic reported nearly half of the largest 50 markets in the nation are overvalued. If some of us are surprised, it appears homeowners and homebuyers may not be.
At first glance, this should have been the best time for homeowners to sell their homes. After all, it’s been dubbed the “strongest seller's market ever”. In ValueInsured’s latest Modern Homebuyer Survey, 83% of all homeowners in America believe “now is a good time to sell”. So the 29.6 trillion-dollar question is: why aren’t they selling?
