Consumers confident in housing but interest rates still a concern
Confidence in the housing market remains strong but that view is influenced by low interest rates which are the main concern of most.
A new report from Berkshire Hathaway Home Services reveals that around 70% of both prospective and current homeowners have a favorable view of the real estate market, with almost half citing low interest rates as their top reason while 43% say it’s due to rising home values.
“Optimism in the real estate market and economy are at levels we have not seen since we first began fielding this survey in 2015,” said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “Mortgage rates remain near historic lows even with recent upticks, and we’re seeing rising wages, job growth and construction rates, which continue to make homeownership a compelling and realistic investment for many Americans.”
Millennials are most concerned about interest rates with 68% admitting a sense of urgency to buy a home before mortgage rates increase.
However, 70% of prospective buyers say they are happy to wait for the right home to become available, with inventory remaining tight in many markets. Millennial buyers say they want a home that doesn’t need fixing-up.
While financial considerations such as accurate market value and confidence that it is a good investment were each important for more than a third of prospective homebuyers, having a good neighbor was more important for 50% of respondents.
“It will be interesting to see how rising consumer optimism plays out in the spring and summer home-buying buying seasons,” said Blefari.
A new report from Berkshire Hathaway Home Services reveals that around 70% of both prospective and current homeowners have a favorable view of the real estate market, with almost half citing low interest rates as their top reason while 43% say it’s due to rising home values.
“Optimism in the real estate market and economy are at levels we have not seen since we first began fielding this survey in 2015,” said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “Mortgage rates remain near historic lows even with recent upticks, and we’re seeing rising wages, job growth and construction rates, which continue to make homeownership a compelling and realistic investment for many Americans.”
Millennials are most concerned about interest rates with 68% admitting a sense of urgency to buy a home before mortgage rates increase.
However, 70% of prospective buyers say they are happy to wait for the right home to become available, with inventory remaining tight in many markets. Millennial buyers say they want a home that doesn’t need fixing-up.
While financial considerations such as accurate market value and confidence that it is a good investment were each important for more than a third of prospective homebuyers, having a good neighbor was more important for 50% of respondents.
“It will be interesting to see how rising consumer optimism plays out in the spring and summer home-buying buying seasons,” said Blefari.
