A recent survey conducted by John Burns Real Estate Consulting, LLC offered some insight into why prospective shoppers are reluctant to purchase. Of the more than 20,000 people who had recently visited a new home community and responded to the survey questions, 75% were current homeowners, 20% were renters, and 3% were living with their parents.
98% prefer ownership over renting for their next home. Although 20% of those who took the survey are currently renting, only 2% of them prefer to rent today. 2% said they wanted to rent for their next move but 68% of that 2% want to buy a home in the future.
Young couples and families were the most likely to choose homeownership over renting for next move.
75% said they would move for the right opportunity, 32% expect to move in the next year, and 25% do not know when they will move. Only 24% said they are very satisfied with their current home and have no desire to move.
64% responded “yes” or “maybe” to “What obstacles? It’s a great time to buy!”
When asked about the obstacles to buying a home today, the top three obstacles cited were:
- Bad time to sell
- Down payment
- Lack of confidence in the market
Only 23% said qualifying for a home was a potential obstacle. 50% cited some lack of confidence in the market and, although lack of confidence in the market was most common among the older, more mature buyers; the more mature, experienced buyers were also the ones most likely to recognize that now is the right time to buy a home.