Over 50% of Americans Planning on Buying in the Next 5 Years

Over Half of Americans Planning on Buying in the Next 5 Years | Keeping Current Matters

According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations.

Those Looking to Buy

  • 74% of those looking to buy a new home will consult with 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 homeowners set a budget before looking for a home, and 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 who 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? An article by Fannie Maereveals evidence that a large number of homeowners are dramatically underestimating the equity they have in their current home. The report explains that:

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 to 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.

Jim Cramer with EXIT Preferred Realty.  Director of Sales for my Brokerage with offices in Chambersburg and Waynesboro PA.  I enjoy Teaching, Training and Coaching the Agents in my office.  If you have ever considered a career in Real Estate or know of anybody who has, I would be happy to help further with information on becoming a Real Estate Agent.  Jim Cramer - 717-830-5591

 

Agent Login    |    Powered by Onjax
Create Free Account or
Jim Cramer
I agree to the Terms of Use
Keep me updated about interest rates and market information by our trusted local lending partner.
Equal Housing Opportunity Realtor MLS
Sign-In or