Home builders received a vote of confidence of sorts at the Pacific Coast Builders Conference in San Francisco with the disclosure that would-be buyers favor new houses almost unanimously over used.
According to a survey conducted by John Burns Real Estate Consulting of Irvine, Calif., some 10,000 visitors to new home projects and released at the show, a "huge" 93% want a new house, not one that has already been broken in by another family.
Another bit of good news: Eighty-eight percent believe now is a good time to buy. Rates are low and so are prices.
So why are new home sales bouncing around their lowest levels ever? One reason, said J. Walker Smith, executive chairman of the Futures Group, is that wanna-be owners are more cautious than they've been in ages.
"Risk is back on the table," said Smith, whose firm used to be known as Yankelovich, adding that three out of four "now believe the American dream is more of a dream than a real possibility."
As Smith sees it, folks haven't given up their aspirations. But they are worried about making the right decision, especially when it comes to homeownership.
"They are more aware of risk of all kinds," he told the conference. "They still want a better life and a nice house, but they've left behind a 30-year run of prosperity where they felt that risk had been conquered. This is the context of life for consumers today."
Smith, whose firm spots and explains trends in various business sectors, said homebuyers are still willing to spend money for a comfortable lifestyle. But they are going to spend it less on showing off and more on what they want.
"People are no less frugal," the futurist told a room full of builders and allied professionals hoping to get some insight into what lies ahead. "Decreasing numbers of consumers feel they have all they need. There is no less materialism.
"But they are driven to a new kind of satisfaction. The trend now is toward their intimate circle of friends. Social currency is the new driving ambition, so if you want to sell a house, you better make sure you satisfy your buyers' social ambitions."
