SANTA CLARA, Calif.,
Oct. 19, 2016 /PRNewswire/
-- The 2017 home buying season will be characterized by a
large increase in first time home buyers, increasing affordability
issues among buyers, and high demand for suburban homes, according
to realtor.com®'s Active Home Shopper Report released
today. Realtor.com® is a leading online real estate
destination operated by News Corp [NASDAQ: NWS, NWSA]; [ASX: NWS,
NWSLV] subsidiary Move, Inc.
The study, based on September survey data of active shoppers on
realtor.com®, provides insight into future home buying
trends in 2017 by analyzing responses from consumers who plan to
purchase homes in the Spring or Summer of 2017, peak seasons for
home purchases.
Significant findings from the survey include a potentially large
increase in first time home buyers in 2017, capable of rising to 52
percent of all buyers next year, from 33 percent in 2016.
Affordability, down payments, and credit scores are starting to
challenge limited inventory as the No. 1 barrier to home ownership.
Suburban homes are the most preferred as 43 percent of first time
home buyers have a stated preference for the suburbs, likely due to
their desire for safe neighborhoods, privacy and to meet the needs
of their growing families.
1. First time home buyers could make up over half of
the 2017 home buyer population
The most notable characteristic of the 2017 home buying season
is expected to be the large number of first time home buyers
entering the market. According to the survey, first time home
buyers now make up 52 percent of prospective buyers looking to
purchase in 2017. Last year, 33 percent of shoppers planning to
purchase in 2016 were first timers. Millennials are leading the
pack with 61 percent of these first-time homebuyers under age 35.
Top reasons cited by millennials for buying include getting married
or moving in with a partner, growing tired of their current living
space, and planning to increase family size.
"This represents an 'oh shift' moment in housing," said
Jonathan Smoke, chief economist for
realtor.com®. "With so many first time buyers in the
market, competition will be even fiercer next year for affordable
starter homes in the suburbs. Those looking to buy may want to
consider a winter home purchase in order to avoid bidding wars and
higher prices spurred by a potential increase in millennial
buyers."
2. Affordability and mortgage qualification expected to
replace lack of inventory as the largest barrier to home
ownership
In 2016, 40 percent of home shoppers cited lack of inventory as
the largest barrier to home ownership, but realtor.com®
reports this will potentially shift to affordability and mortgage
qualification issues as more first time home buyers enter the
market. Of first time home buyers planning to purchase next spring
surveyed in September, 37 percent indicated their largest
impediment to home ownership is the down payment and 30 percent
cited finding a house within their budget.
3. Safe neighborhoods, more living space, and larger yards
top list of key home attributes
First-time homebuyers cite safety, more living space, and larger
yards as the key features for their new homes. This is
consistent with their top goals of buying: attaining privacy and
addressing the needs of their families. A third top objective
of first time buyers is to make a financial investment that will
grow over time.
As millennials marry and move in with partners, reasons to
purchase are driven by actual or planned growth in their families,
and they show strong preference for single family homes (39
percent) or townhomes (34 percent) and away from multi-family homes
(15 percent), condos (10 percent), or mobile homes (2 percent).
4. Competition for the suburbs is expected to heat up
With families and safety on the brain, it's no surprise that
first time home buyers identified the suburbs as their No. 1
preferred location. In fact, 50 percent of all respondents
identified suburban areas as their preferred location. For boomers,
their desire for the suburbs can likely be attributed to their
desire to be close to family and friends.
Data also show younger homebuyers are more likely than their
older counterparts to prefer urban living, the second-most common
location preference among millennials after suburbs.
5. Spring and summer will continue to be the hottest times to
buy a house in 2017
A majority of all survey respondents were beginning the housing
search at the time of the survey and planned to purchase in seven
months or longer, indicating spring and summer will continue as the
top seasons to buy and sell homes. Realtor.com® found
that 73 percent of respondents had been considering homeownership
for less than three months and did not expect to purchase a home
immediately.
Forward-Looking Statements
This document contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's views and
assumptions regarding future events and business performance as of
the time the statements are made. Actual results may differ
materially from these expectations due to changes in global
economic, business, competitive market and regulatory and other
factors. More detailed information about these and other factors
that could affect future results is contained in News Corp's
filings with the Securities and Exchange Commission. The
"forward-looking statements" included in this document are made
only as of the date of this document and we do not have any
obligation to publicly update any "forward-looking statements" to
reflect subsequent events or circumstances, except as required by
law.
About realtor.com®
Realtor.com® is the trusted resource for home buyers,
sellers and dreamers, offering the most comprehensive source of
for-sale properties, among competing national sites, and the
information, tools and professional expertise to help people move
confidently through every step of their home journey. It pioneered
the world of digital real estate 20 years ago, and today helps make
all things home simple, efficient and enjoyable.
Realtor.com® is operated by News Corp [NASDAQ: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
license from the National Association of REALTORS.® For
more information, visit realtor.com®.
Media Contact:
Realtor.com®
Lexie Puckett Holbert –
lexie.puckett@move.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/realtorcom-consumer-survey-reveals-first-look-into-2017-home-buying-season-300347307.html
SOURCE realtor.com