From floridareatlors.org
Current and prospective homeowners are increasingly optimistic about U.S. real estate, according to a survey conducted by Berkshire Hathaway HomeServices.
Respondents cited low interest rates, an improving economy and increasing housing inventory as key reasons for their growing optimism.
Three out of four (76 percent) prospective homeowners said this year is a more ideal time to buy a home — an 11-point jump from December.
Overall, downward trends noted in the two previous surveys reversed course: 61 percent of current homeowners and 65 percent of prospective homeowners now see the real estate market as more favorable for sellers and buyers.
In the December Homeowner Sentiment Survey, 68 percent of prospective homeowners said that increased interest rates would have “some impact or a strong impact on my life.”
Yet mortgage rates trended lower and remain near historic lows. And even though the Federal Reserve has pledged additional increases in its benchmark interest rate, respondents cited lower rates as the primary reason for their optimism toward real estate.
Prospective homeowners are significantly less concerned than they were late last year that a low listing inventory of for-sale homes will hurt their chances to find the right home.
They are less concerned (by 10 percentage points from the previous survey) that new lending requirements will make it more difficult to qualify for a mortgage loan.
However, 72 percent of prospects showed increasing concern that rising home prices will make it more difficult to buy — a 6-point jump from the December survey.
To purchase their ideal home, current homeowners and prospects said they’re more willing to forego swimming pools, accessibility to public transportation, basements and proximity to their workplace.
However, they’re less likely to compromise on location within a good community, a good floor plan, proximity to solid schools and the outward appearance of a home.