CHICAGO – Oct. 30, 2014 – According to a survey conducted by Pollara for BMO Harris Bank, American homebuyers visit an average of 10 homes before making a purchase, and about half (51 percent) spend up to six months searching.
According to the study, half (52 percent) of today's current buyers believe they'll find their dream home in their price range, but 48 percent say it's impossible – and 71 percent will settle for something less than perfect.
Still, buyers believe in the American Dream: 77 percent of homebuyers say they'll know immediately if they've found their ideal house.
Feelings associated with home buying
- Excited: 44 percent (47 percent of first-time buyers)
- Hopeful: 33 percent (43 percent of first-time buyers)
- Cautious: 32 percent (26 percent of first-time buyers)
- Optimistic: 28 percent (26 percent of first-time buyers)
- Happy: 26 percent (37 percent of first-time buyers)
- Anxious: 25 percent (31 percent of first-time buyers)
While overall stress levels are moderate, American buyers still have some concerns. Their biggest worry is that they'll find something wrong with the house after they move in (79 percent); and 69 percent worry that housing prices will drop after the purchase, and 61 percent fear the possibility of not being able to afford their mortgage.
"In the third quarter of this year, mortgage lending standards were being relaxed more prolifically than at any other point since the Federal Reserve's new survey began in 2007," says Michael Gregory, Head U.S. Economics, BMO Capital Markets.
"Meanwhile, 30-year fixed mortgage rates have dipped back below the 4 percent level in recent weeks, for the first time since the spring of 2013," Gregory adds. "Both of these developments point to a pickup in housing market activity, in terms of turnover and homes – yes, even 'dream homes'– available for sale."
Among first-time homebuyers, only 13 percent are currently pre-approved for a mortgage; however, 83 percent plan to go through the process before they purchase a home.
© 2014 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.