One-third of Pennsylvania homebuyers bought their homes predominantly because they wanted to buy a home, not because they had to look for a home, according to a recent Welcome Home survey conducted for the Pennsylvania Association of Realtors® (PAR). The survey, performed by Keystone Analytics®, revealed that 32 percent of homeowners decided to buy a home because of a desire to relocate or they were tired of renting. The remainder of respondents had unique reasons or were pushed to find a new home due to circumstances, like family changes. This 30-35 percent share of homebuyers has held fairly steady over the last year of the Welcome Home surveys.
“It’s not surprising that we see buyers in the 18-34 age range who cited being tired of renting as the main reason they wanted to buy a home,” according to PAR President Todd Polinchock. “Owning a home helps build wealth, and national surveys show that younger buyers see a value in owning property. What is surprising is that 11 percent of 18-34 year-old buyers indicated that they purchased an investment property or a second home. This may be an emerging market for this part of the industry.”
Cash purchases and 30-year mortgages continue to be the most popular way to finance a home. Forty-one percent of those responding chose a 30-year mortgage to purchase a home. Twenty-one percent of all respondents surveyed reported buying their home in cash as well.
“Cash purchases are even more common with senior homebuyers, with 36 percent of those over age 65 reporting they purchased their new home just with cash,” Polinchock said.
“We’ve found that 10 percent of those surveyed said choosing the right home to purchase can also be a stressful part of the process,” he added. “Financing and closing issues continue to be the most stressful, with 21 percent citing financing questions, and 6 percent saying closing issues were the most stressful.”
The Welcome Home surveys are conducted on a quarterly basis and provide information on a number of consumer homebuying trends.