Despite crushing inflation, rising mortgage rates to contend with and the continued woes of rising rents, a new study shows that, hey, maybe there’s reason for optimism?
Some six in 10 Americans, or 56%, think “now” is the time to buy a home, according to the study, conducted by OnePoll on behalf of fintech mortgage lender Lower. The survey compiled responses from 1,000 homeowners and 1,000 renters and found that 55% of respondents say ongoing record inflation has made them even more likely to buy a home.
Specifically, 47% of this group said they were aiming to get one next year. The majority of this individual sample, 74%, add that it would be the first time they would buy a home. Only 26% are existing owners who want something else.
Just over half of participants – 51% – said they saw homeownership as an investment opportunity towards financial freedom, while 50% said they wanted to get their foot in the door. the property before appreciation increases further. Others who have their eyes set on their golden years – 42% to be exact – said they want to live comfortably in retirement. (Of the total pool, 41% admitted to being bored in their current residences and 41% aim to secure a home for their growing family.)
“The owners have earned tens of thousands of dollars in equity over the past few years. This is the money tenants left on the table,” Lower co-founder and CEO Dan Snyder said in the report. “A lot of people are waiting for prices to cool down, but the reality is that they will just slow down from their record pace. Now is the time to buy before the appreciation continues to climb.
Among survey participants, 30% were optimistic about the housing market slowing down over the next year, while 43% saw the “very” worrying status quo continuing, while 25% thought things were going well. to get worse.
And although headlines of the cooling housing market are making their way through the media, 45% of survey participants said the boom — and the strong demand that has come with it — is actually getting hotter. (Meanwhile, only 10% thought the boom had slowed.)
Of the 1,000 tenants, 56% of them say they want to move but cannot afford it. Among them, 27% pay $2,001 to $3,000 per month, 20% pay between $1,001 and $2,000 — while 16% owe $3,001 to $4,000 per month. Yet 57% of those 1,000 respondents hoped to one day own their own home. Their reasoning included financial stability – 40% – and the possibility of gaining financial freedom, for 35%.
“It may sound intimidating, but it doesn’t have to be,” Snyder added. “Find a real estate agent and lender that values the customer experience by creating a certain and simple process. They will help you along the way and your biggest concern will be finding the perfect home.