1st Time Home Buyer and Home Seller Survey
An recent independent survey of first-time home buyers and sellers revealed that more than 80 percent feel the current housing market is more affordable today than it was this time last year, despite the fact that 40 percent of all respondents are more worried about the economy now compared to a year ago.
Sixty percent of first-time home buyers don’t feel they have a good handle on the real estate process, and rate the three most influential factors in their decision to buy a home as: Current housing prices (66 percent), followed closely by both the home buyer tax credit (63 percent) and low interest rates (60 percent).
Finding a home within a buyer’s price range is extremely important (95 percent) as is a neighborhood’s safety (90 percent).
The top two factors influencing first-timers’ decision to sell their homes were personal/family reasons and current housing prices — both of which were cited as motivating factors by 48 percent of first-time sellers.
Sellers are mainly concerned about losing money on the sale of their home and receiving offers near their asking price.
Approximately half of all first-time home buyers (48 percent) and sellers (53 percent) anticipate housing prices will increase over the next year.
The majority of first-time home buyers (79 percent) and sellers (86 percent) believe mortgage rates are either somewhat or very affordable right now. Again, due to their experience, sellers are more likely than buyers to find the current rates very affordable (35 percent of sellers vs. 21 percent of buyers).
Low interest rates have influenced 46 percent of owners to sell their home for “move up” reasons and another 43 percent to change neighborhoods.
Most respondents feel that getting a mortgage today is either somewhat difficult or very difficult (87 percent of first-time buyers and 82 percent of first-time sellers). Because many may be going through the process currently, buyers were significantly more likely than sellers to find the process very difficult vs. not difficult at all.