Low inventory continues to plague real estate markets across the country, but what effect is this having on young buyers? Berkshire Hathaway HomeServices surveyed prospective homeowners in their latest Homeowner Sentiment Survey to find out if they still think now is a good time to buy a home. Overwhelmingly, they said, “yes.”
More than 71 percent of the 2,518 respondents—many of whom are millennials—believe now is a good time to buy a home. And they’re not compromising what they want in a home: 63 percent say they remain steadfast in their ideal property preferences. However, price is a major concern for both buyers and sellers. Of the prospective millennial buyers, 76 percent express concern about overpaying for a home, while 73 percent of baby boomers say they are hesitant to list their homes because home values are rising.
While many current homeowners aren’t listing, housing shortages remain in several U.S. markets where new construction hasn’t bounced back from the crushing blow of the recession. But prospective buyers are willing to incentivize to get the home they want. According to the survey, 45 percent say they’d cover closing costs, 36 percent are willing to send a personal letter to sellers, 58 percent would put down more earnest money, and 31 percent say they’d consider making an offer above asking price to secure a home.
“Our data suggests younger generations remain very positive about homeownership and remain in the game in markets where competition for good, reasonably priced homes can be tough,” says Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “To win, consumers must work with a skilled agent who understands the market and will recommend the best ways to secure a home at a fair price.”
Overall, optimism is still high when it comes to real estate. Seventy-two percent of respondents express favorable feelings about the market, citing low mortgage rates and price appreciation. They’re also keenly aware of mortgage rates, with 61 percent of prospective buyers and 63 percent of current homeowners expressing confidence in their knowledge of current rate levels. “Historically low mortgage rates continue making homeownership achievable for many Americans,” says Blefari. “We believe mortgage rates will remain within a range of current low levels for the foreseeable future.”
Source: Berkshire Hathaway HomeServices Homeowner Sentiment Survey, Sept. 26, 2017.
