How buyers are acting in today’s sellers’ market.
The Lawhead Team has come across a recent article from Chief Economist, Jed Kolko at Trulia’s Blog about the recent trends for buyers in today’s sellers’ market.
Worried Buyers Would Take Desperate Measures in Today’s Sellers’ Market
Rising prices and tight inventory stoke worries and inspire aggressive home buying tactics. As housing becomes less affordable, Americans are downsizing their housing dreams but expecting a bigger financial payoff from homeownership.
This year’s home-buying season looks nothing like last year’s. With mortgage rates and home prices rising, the best deals are long gone. Furthermore, there are fewer homes for sale now than one year ago. To what lengths will desperate house hunters go to snag the house of their dreams, and what are they most worried about? To get the answers to these questions, Trulia worked with Harris Interactive to conduct an online survey of 2,029 U.S. adults between June 24-26, 2013. For the full methodology, see below.
What Prospective Home Buyers Worry About – Prospective home buyers are feeling the pain of a booming real estate market. The top worry among all survey respondents who might buy a home someday is that mortgage rates will rise further before they buy (41%), followed by rising prices (37%).
In the hottest markets – those where asking home prices rose more than 15% year-over-year like Las Vegas and Oakland – buyers’ worries are even more intense. In those areas, potential house hunters have heightened concerns about continued price increases, competition from other buyers, and having to decide quickly on a home before it gets snapped up. The only thing that people in the hottest markets worry about less than people in the rest of the country is qualifying for a mortgage.
While rising mortgage rates are the top concern for people if they were to buy a home within the next year, people actually planning to buy within the next year have another main worry: finding a home they like. Tight inventory means slim pickings for buyers. Even though inventory is starting to expand, and rising home prices should bring more for-sale homes onto the market, people who actually want to buy within the next year are feeling the pressure of competing buyers and limited inventory.
Continue reading article here: http://trends.truliablog.com/2013/07/american-dream-survey-summer-2013/