Consumers value the importance of homeownership, so what is keeping them from buying today? John Burns Real Estate Consulting recently surveyed 20,000 people of which 75% were current homeowners, 20% were renters, and 3% lived with their parents.Are current homeowners rethinking homeownership? No.
· 98% of all prospective shoppers prefer ownership over renting for their next home. Only 2% of these prospective shoppers prefer to rent today, despite the fact that 20% of those who took the survey are currently renting.
· Even among the 2% that shared they wanted to rent for their next move, 68% want to buy a home in the future.
· The young couple and the family segments are the most likely to exit renting for homeownership.
Are they all waiting to move? Yes and No.
· 32% expect to move in the next year.
· 25% do not know when they will move.
· BUT 75% said they would move for the right opportunity.
· Only 24% say they are very satisfied with their current home and have no desire to move.
What are the obstacles to buying a home today?
· 64% of consumers say “yes” or “maybe” to “What obstacles? It’s a great time to buy!”
· Of the true obstacles, consumers note these as their top three:
o Bad time to sell
o Down payment
o Lack of confidence in the market
· Interestingly, qualification does not appear to be the major financial obstacle today. Only 23% note qualifying for a home as a potential obstacle.
· 50% still have some lack of confidence in the market.
· Lack of confidence in the market is most common among the older, more mature buyers; however, the more mature, experienced buyers are also the ones who are most likely to recognize that now is the right time to buy a home.
