Owning a home continues to be important for the younger population, even with inventory shortages and competition for homes that are currently for sale. A recent housing market survey focused on homeowner sentiment shows 71 of prospective homeowners (a demographic primarily comprised of millennials) believe now is a good time to purchase a home and 62 percent remain consistent with regard to their ideal type of home.
The survey also showed that consumers have a clearer understanding of the overall condition of the market. 72 percent of potential homebuyers expressed their understanding that the housing market has become more competitive with a shortage of available homes for sale. 76 percent of prospective millennial homebuyers say they are concerned about overpaying for a home. 76 percent of prospective millennial homebuyers say that finding a home that is priced at fair market value is challenging.
A number of factors have contributed to inventory shortage, including a slow down for new construction and baby boomers resisting the sale of their homes, but younger generations continue to have a positive outlook regarding homeownership and demonstrate a desire to enter the housing market in areas where competition for fairly priced homes can be a challenge.
Home values have recovered from the Great Recession for the most part and homeowners also may have more equity in their homes that they are aware of. Equity gives people a bit more room to make important changes in their lives. These are all positives for the housing market.
Other key points from the recent survey include:
- 45 percent of prospective homebuyers say they are willing to cover closing costs
- 58 percent of millennial buyers say they are willing to come up with a higher deposit to demonstrate their commitment to a seller
- 31 percent said they are willing to make offers above the asking price to secure a home they are interested in buying
- 72 percent of current homeowners say they have a positive outlook regarding the housing market, with 51 percent crediting low mortgage rates for their optimism and 44 percent crediting price appreciation for their optimism
Low mortgage rates continue to make homeownership an achievable goal for many Americans and housing market professionals anticipate rates will remain low for some time.