Homebuyers are excited about the housing market, but confidence across homeowners has dropped.
According to the latest ValueInsured’s latest Modern Homebuyer Survey, confidence among homeowners in the country has fallen from 76.9 percent to 74.3 percent in the past two quarters.
However, millennial first-time homebuyers have increased their housing confidence by 2 points, rising from 57.1 percent to 59.1 percent.
The cost of housing at this time is a determent to many. Only about one-third believe they can afford a down payment now, a decrease of 9 points from 44 percent, year-to-year. Millennials are willing to sacrifice to afford a down payment, though. Fifty-nine percent said they would give up or cut down on eating out, 51 percent said they would be willing to pick up a second job, while 47 percent would give up most or all vacations. Thirty-nine percent would sacrifice clothes shopping and 33 percent would go back to living with Mom and Dad to save for a down payment. Beyond the down payment, 48 percent of all homebuyers and 42 percent of millennials are confident that a home they purchase today will either gain value or stay the same by the end of next year.
Homeowners’ confidence in the housing market has slightly dropped. Nearly six in 10 homeowners want to sell, but are waiting because they don’t want to pay for a home in today’s high market, and 59 percent reported they believe people who purchase homes in their communities are overpaying. Thirty percent believe the housing market is unhealthy, and 53 percent believe they could see another housing crisis in their lifetime.
“Homeowners’ sentiments have always been a leading indicator of where the market could be headed, as they are more informed and closer to the ground,” Joe Melendez, CEO of ValueInsured said. “They are also the key to increasing inventory. If more homeowners become motivated to sell, prices could ease. This, coupled with rising rates and other economic factors, should signal to new homebuyers to take further precautions when they buy.”