Affordability issues have forced potential homebuyers
A recent consumer survey conducted by Remax found 88% of respondents said they are "very" or "somewhat likely" to purchase a home next year. At the same time, 71% of respondents said current market conditions caused delays in their homebuying timeline, and 79% said more affordable home prices would empower them to buy within the next six months or less.
Homebuyer affordability has been steadily improving to end the year. October marked the
"Affordability is improving — [it] is at its lowest level since March 2022 — and is likely to continue to as mortgage rates hold to around 6 percent and more supply comes onto the market," said Edward Seiler, MBA's Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America, in a press release last month.
First American's September Real Price Index also anticipates affordability will continue to get better, predicting a 3% improvement on a year-over-year basis by the end of 2026, largely based on the expectation that income growth will outgain the average increase in home prices.
The majority of respondents between the ages of 60 and 65 said availability of affordable homes is most important when selecting a neighborhood.
The second most important factor is lower mortgage rates, with more than half of respondents indicating this would expedite their purchase plans. Less than 10% said interest rates between 5% and 6% would speed up their plans.
Mortgage rates decreased for the second straight week to 6.19%, resting near
The Federal Open Market Committee is expected to cut rates at its December meeting next week, but notable increases in the 10-year Treasury yield over the last two days indicate mortgage rate drops may be short-lived.
What else influences homebuyers?
The report also found buyers, particularly Gen Z and Millennials, are prioritizing neighborhood safety, social connection and access to lifestyle-enhancing amenities when searching for a home.
"Today's buyers aren't just looking for a house – they're looking for a sense of community," said Chris Lim, Remax's chief growth officer, in a press release Friday. "It's clear that lifestyle and connection are just as important as the property itself. It's the job of real estate professionals to help prospective buyers find homes and neighborhoods that meet their financial needs while also supporting the way they want to live."
The report showed 60% of respondents would pay a premium for shared community amenities, such as pools and gyms. Among them, three in four are willing to pay 5% or more of the home's price for amenities.
The most important amenities are grocery stores and shopping (29%) and restaurants and cafes (20%).
