52 Percent Are Likely To Buy In The Next Five Years

Dated: 05/05/2016

Views: 931

52% Likely to Buy in the Next 5 Years!! Are You? | Simplifying The Market

52% Likely to Buy in the Next 5 Years!! Are You?


According to the recently released 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 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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Julie Baldino

Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....

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