Do You Have Plans to Buy a Home?
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. People surveyed said they would be willing to pay an average of $296,000 for a home and would average a 21% down payment.
Those Looking to Buy
- 74% of those looking to buy their next home will consult with a real estate agent
- 59% said they will go to online real estate websites
- 37% will seek recommendations from friends and family
- 78% plan to get pre-approved for a mortgage before seriously looking 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 6 months looking before they actually purchases a home.
- 8% bought their home without doing 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”.
Why Are More People NOT Planning Their Next Move?
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:
“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.”
Real Estate Bottom Line
Perhaps it is time for us to talk 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 a great time to move-up, move-down or buy that vacation home you’ve always wanted.