American consumersÃ¢â‚¬â„¢ perception of the residential real estate market was revealed in a recentÃ‚Â surveyÃ‚Â byÃ‚Â Edelman Berland. They interviewed 2,500 Americans who are Ã¢â‚¬Å“in the marketÃ¢â‚¬Â to buy or sell a home. Respondents were between 25-64 years old with a household income of at least $50,000.
Here are the key findings of the buyer and seller demands.
BELIEF IN THE HOUSING MARKET
There is a strong belief among this segment of the population that the housing market is on the right track and that is committing almost 7 out of 10 to buy or sell a home this year. Millennials belief in real estate is actually higher than the overall population.
- 77% of consumers (and 85% of Millennials) have a favorable view of housing
- 79% of people (and 83% of Millennials) believe the housing market is on the right track
- 69% of consumers said they are committed to buying or selling a home now
The extreme weather faced by much of the U.S. definitely delayed many real estate transactions. That pent-up demand is now being released causing price appreciation in many regions of the country. This rise in prices and the expected increase in interest rates is causing many purchasers to buy sooner than later.
- The main reason (45%) people waited to make a real estate transaction is they were waiting for spring weather to arrive
- 76% of consumers believe that pent-up demand will create even more competition for existing homes
- 74% of consumers are most concerned about higher than expected prices when buying a home this spring
- 83% of consumers are motivated to act sooner than later because they fear interest rates will increase
Other interesting findings from the survey (broken down by buyers and sellers):
- 80% of real estate consumers are more committed to buying
- 78% of potential buyers said it will be easier to purchase a home this spring since Ã¢â‚¬Å“homeowners want to sellÃ¢â‚¬Â
- 72% are encouraged because Ã¢â‚¬Å“the economy is improvingÃ¢â‚¬Â
- 46% of buyers said spring was a more favorable time to buy a home
- 28% of buyers said summer was a more favorable time to buy a home (an 8% increase over last summer)
- 83% of real estate consumers are more committed to selling
- 63% of sellers are buoyed this spring by the improving economy and their perception that buyers are motivated following the difficult winter
The real estate market will continue to gain ground through the summer as more and more people realize this is a great time to move. And, the vast majority (88%) of those surveyed realized that hiring a real estate professional is important to their home buying or selling success.
For now, buyers can expect more breathing room as the inventory continues to increase and sellers take a while to figure out that overpricing is no longer a winning strategy.
Seven Gables Real Estate