Real estate- and its prospects- remains favorable among consumers, thanks to lower mortgage rates and higher home values.
According to Berkshire Hathaway HomeServices’ latest Homeowner Sentiment Survey, 72 percent of homeowners feel favorable toward the real estate market, 51 percent said thanks to low mortgage rates and 44 percent said they were feeling optimistic thanks to their potentially rising home value.
“Historically low mortgage rates continue making homeownership achievable for many Americans,” said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “We believe mortgage rates will remain within a range of current low levels for the foreseeable future.”
Seventy-one percent of potential homebuyers said now is a good time to buy a home, with 63 percent unwavering in their desired features for a home. However, homebuyers understand that lack of inventory on the market presents a challenge for them. Seventy-two percent said homebuying has become more competitive, and 76 percent of millennials, the generation most likely to be prospective homebuyers, are concerned about overpaying for a house, while 76 percent also said that finding a competitively-priced home has been difficult. On the other hand, 73 percent of baby boomers have put off listing their homes because the value continues to rise, and 80 percent of boomers said they haven’t listed because they not want to house shop.
“The world seems to be waiting on millennials to make a move in all facets of their lives,” added Blefari. “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.”
Yet, some millennial homebuyers are willing to go the extra step to land their house. Fifty-eight percent said they would put down more of a deposit to show their commitment, 45 percent would cover closing costs, 36 percent would write a personal letter to the sellers and 31 percent would offer more than asking price.
“Sure, it can be competitive to secure a good, reasonably priced home,” Blefari said. “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.”