A LendingTree survey reveals that now is an ideal time for prospective homebuyers to purchase a property before
The Charlotte, N.C.-based online lender conducted a survey that included a panel of 600 individuals who are considering buying a home within the next 12 months. Overall, 68% of respondents believe residential home prices are going to increase over the next year and 64% anticipate mortgage rates to also rise during this time period.
However, the outlook for higher home prices is not uniform across the country. For example, 72% of those surveyed who reside in western U.S. project an increase in residential home values, while only 59% who live in the Northeast have a similar outlook on residential home prices in their area.
Of those surveyed, 57% are first-time homebuyers while the rest already own a house. Additionally, 45% said they are currently looking for a home or found one but have not yet closed, while 55% are casual shoppers. On average, active homebuyers are 34 years of age, while the average age of casual shoppers is 40.
The survey determined that 80% of active home seekers are more optimistic about their households’ financial condition 12 months from now, compared to 70% for casual shoppers.
Furthermore, less active home seekers said they need more confidence in their household financial situation before homeownership becomes a top priority, with 23% waiting for their economic situation to improve and another 20% wanting to save more money in order to make a downpayment.
Also, 27% of experienced homeowners stated the top reason for their casual pursuit of a home at this time is the need to sell their current property.
“The housing market is stabilizing and financing is becoming more available for potential home buyers,” said Doug Lebda, founder and CEO of LendingTree.com. “Increasing home prices are providing would-be sellers with the confidence needed to take action, while rising interest rates are placing a sense of urgency on potential home buyers. Together this creates a unique window of opportunity for buyers and sellers to take advantage of the market while home prices and rates are still reasonably affordable.”
