BUY NOW OR PAY MORE LATER

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

Below is a great summary of why people are planning to buy houses in the next five years.

However, and this is a big HOWEVER, there is a huge implication in a slightly different context, which is this.

When over half of Americans plan on buying a house, that will deplete housing inventories even more than what has already happened. When demand goes up ( and 50% planning to buy is demand going up) and supply goes down, prices will be going up.

In our area, Delco, Chesco, Montco, prices have not increased a lot, YET. Plus interest rates are still at record low levels.

Lesson is, now is the time to make that move. If you wait even a few months, chances are it will cost you a lot more.

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 Mae reveals 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.

WANT MORE INFORMATION, JUST CALL OR TEXT TO 484-5784-4088 OR USE THE “CALL ME” BUTTON ON THE SITE, FILL OUT ONE OF THE CONTACT BOXES.

 

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