52% of Americans say they are likely to buy a home in the next five years.
Americans surveyed for the report said they would be willing to pay an average
of $296,000 for a home and would average a 21% down payment. The report
also had other interesting revelations.
Those
Looking to Buy
74% of those looking to buy a new home will consult
a real estate agent
59% said they will visit online real estate websites
37% will seek recommendations from friends and
family
78% plan to get pre-approved before seriously searching
for a home
Those
Who Already Own
75% of current home owners set a budget before
looking for a home. 16% ended up spending less while 13% went over their
budget.
63% of American homeowners spent under six months
looking for a new home before they made a purchase.
8% bought their home without participating in an
active real estate search - or even any plan to buy at all - because a specific
property caught their attention.
The last point is very interesting: Of those that
purchased a home, 8% bought “without any plan to buy at all”. A property caught
their attention and they acted on it.
Why
are More People not Planning their Next Move?
Why are people that are considering a move not
putting their home search to a plan, and instead, buying only when a property
catches their attention? A recent article by Fannie
Mae may give us that answer, there is evidence that a large numbers of
homeowners are dramatically underestimating the equity they have in their
current home. The report explains:
“Homeowners
may be underestimating their home equity. In particular, if homeowners believe
that large down payments are now required to purchase a home, then widespread,
large underestimates of their home equity could be deterring them from
applying for mortgages, selling their homes, and buying different homes.”
Bottom
Line
Perhaps it is time to sit with a real estate
professional to determine the actual equity you have in your house and take a
look at the opportunities that currently exist in the real estate market. This
may be the perfect time to move-up, move-down or buy that vacation home your
family has always wanted.
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