Forty-eight percent of millennial first-time buyers who responded to Redfin’s survey saved money directly from their paychecks for their down payment on a house, the most commonly cited method. Next is the opportunity to save extra money during the coronavirus pandemic (31%), a second job (27%), family cash gifts (20%), and the sale of equity investments (19 %).
While many workers have been laid off or laid off due to the pandemic, people who have kept their jobs have been able to save more money than usual over the past year because they spent less. for things like dining out, travel, and in-person events. The personal savings rate in the United States climbed to 33.7% in April 2020, against a pre-pandemic rate of 7.2% in December 2019. It remained at a high level, reaching 27.6% in March. This is according to the Federal Reserve Bank of Saint Louis and the United States Bureau of Economic Analysis, which tracks the percentage of personal disposable income saved by Americans in a given month.
The pandemic effect: a third of all home buyers buy earlier than expected; another third buys later
Thirty-seven percent of all homebuyers (regardless of age) buy a home later than originally expected due to the pandemic and 32% buy a home earlier than expected.
There are many reasons why the pandemic is encouraging some people to rush to buy a home and others to pump the brakes. The popularity of remote working is fueling the demand for spacious homes and also motivating people to move to entirely different areas. But rising prices and a housing shortage are among the factors leading potential buyers to put off their home search.
“Almost half of my clients are people who move to the central valley from Bay area because they want to live in a bigger house for less money, and a lot of them only need to go to town once or twice a week, if that’s the case, âhe said. declared Steven majourau, a Redfin agent in Stockton, Tracy and other parts of California Central valley. “They sell a large condo or townhouse for almost $ 1 million–or a small single-family house for After than $ 1 million–in San Francisco, San jose or East Bay and buy a big house here in the Central Valley for about $ 700,000. “
Buyer’s preferences: private outdoor space and plenty of living space
Nineteen percent of homebuyers said private outdoor space was the most important element in their choice of home, the most common response. This is closely followed by the desire for lots of living space (18%) and privacy in the home of neighbors or passers-by (17%).
Homebuyers’ Concerns: Rising Prices and Other Financial Considerations High on the List
While buyers are looking for space, they are also worried about rising prices.
Rising home prices were the top concern for home hunters, with 27% of homebuyers planning to buy in the next year citing it as a concern. Next come concerns about being able to find a home they like at an affordable price, with 25% of respondents choosing this option. Home prices rose 22% year over year in April, reaching a record high of $ 357,000 (The year-over-year increase is somewhat inflated because price growth was weak last April as lockdowns due to a pandemic nearly brought the housing market to a standstill).
Homebuyers are also concerned about other financial issues, with around 20% of respondents selecting each of the following concerns: rising mortgage rates, ability to get a loan, lack of money for a down payment, and concerns about the economy. .
âAfter months of dramatic increases in home prices, buyers are well aware that homes are more expensive now than they were a year or six months ago,â said Redfin’s chief economist . Daryl fairweather. âEven though people prioritize things like space and privacy in their home search, rising prices mean that many buyers will have to compromise to avoid going beyond their financial comfort zone. A buyer who was hoping for a single-family home may need to settle for a condo, and someone who was hoping for a separate home office may need to get creative and set up part of the living room for an office. “
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Redfin (www.redfin.com) is a real estate broker, instant buyer (iBuyer), lender, title insurer and home improvement company. We sell houses for more money and charge half the cost. We also operate the country’s leading real estate brokerage site. Our home buying clients see homes with on-demand viewings first, and our loan and title services help them close quickly. Customers selling a home can accept an instant cash offer from Redfin or have our home improvement team fix their home to sell it for the best price. Since our launch in 2006, we have saved our customers almost $ 1 billion in commissions. We serve over 95 markets across the United States and Canada and employ over 4,100 people.
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