SANTA CLARA, Calif.,
Dec. 16, 2021 /PRNewswire/
-- Millennials are settling down, starting families and
looking for more space -- and they know that it won't come cheap. A
new Realtor.com® survey suggests shifting
priorities among first-time homebuyers who are increasingly looking
for flex space such as finished basements, guest rooms and guest
houses. These home shoppers have also increased their budgets since
the spring, and are more willing to bid over asking price and use
other tactics to get ahead of the competition.
Realtor.com® and HarrisX surveyed first-time
homebuyers in spring 2021 and again in fall 2021 to understand how
their priorities have shifted in a competitive housing market. The
survey found that while more than a quarter of hopeful first-time
homebuyers were unsuccessful at purchasing a home in 2021, 72% are
aiming to buy in 2022. And after months of trying, home shoppers
have a better understanding of what it will take to write a winning
offer.
"Despite a challenging year, aspiring first-time homebuyers are
surprisingly optimistic about 2022," said George Ratiu, manager of economic research,
Realtor.com. "They're looking at the new year as a fresh
opportunity to make their dreams of owning a home come true and our
survey suggests that they're armed with information and ready to
compete for their first home."
First-time homebuyers know what it takes to win
Home
sales are expected to hit their highest level in 16 years in 2022
according to the Realtor.com® 2022 Housing Market
Forecast. In this fast-paced, competitive market there are a number
of tactics that buyers can use to get ahead such as checking online
listings every day, putting more than 20% down and making an offer
quickly.
- In the spring, 79% of first-time homebuyers were planning to
use these tactics to win a home, but that number jumped to 91% in
the fall, indicating that buyers know what it takes to win.
- First-time homebuyers have also become more willing to offer
over asking price. In the spring 39% said they would not pay over
asking, but that number fell to 24% in the fall.
- In the fall, three percent of first-time buyers were willing to
offer 30% over asking (in the spring, no respondents selected this
option), which equates to more than $110,000 on a typical home -- a significant
premium.
Expanding budgets to match the market
With the median
home price in the U.S. hitting $380,000, many first-time homebuyers found that
they needed to up their budget to land a home.
- In the spring, 75% of first-time shoppers were looking for a
home at or below $350,000, but that
number fell to 62% by the fall, as budgets increased.
- While those shopping in the $350,000 - $500,000
range held relatively steady, the number of first-time shoppers in
the $500,000 - $750,000 range doubled, jumping from 6% in the
spring to 13% in the fall.
Staying closer to home
During the pandemic, many
people moved from cities to suburbs to find more space and
affordability. As we head into 2022, survey respondents are
planning to stay closer to their current location.
- First-time homebuyers planning to stay in their current city or
town increased from 40% in the spring to 47% in the fall.
- Those planning to move to a different city or town within their
state decreased from 42% in the spring to 36% in the fall.
- Those planning to move to a different state held relatively
steady at 17% in the spring and 16% in the fall.
"Our survey data suggests that many people have found the
location they'd like to settle down in, and are now focused on
landing the right home. And with more homes expected to hit the
market in the coming months, there should be plenty of opportunity
for prepared buyers to find their dream home," said Ratiu.
Methodology:
The survey was conducted online from
Sept. 23 - Oct. 1, 2021 among 2,583
adults by HarrisX (which includes an oversample achieving 502
respondents buying a house for the first time in the next year).
The sampling margin of error of this poll is +/- 1.9 percentage
points for all respondents, and 4.4 percentage points for
first-time homebuyers. The results reflect a nationally
representative sample of U.S. adults. Results were weighted for age
by gender, region, race/ethnicity, income, and the status of those
first-time homebuyers where necessary to align them with their
actual proportions in the population.
What price range
are you looking for in a home purchase?
|
Spring
2021
|
Fall
2021
|
Less than
$100,000
|
26%
|
16%
|
$100,000-$200,000
|
25%
|
21%
|
$200,001-350,0000
|
23%
|
24%
|
$350,001-$500,000
|
12%
|
11%
|
$500,001-$750,000
|
6%
|
13%
|
$750,001-$1,000,000
|
2%
|
6%
|
$1,000,001-$1,500,000
|
1%
|
3%
|
$1,500,001-$2,000,000
|
2%
|
3%
|
Over
$2,000,000
|
2%
|
2%
|
How much over the
asking price are you willing to pay to get a home that meets your
needs?
|
Spring
2021
|
Fall
2021
|
I'm not going to pay
more than the asking price
|
39%
|
24%
|
1-5% over listing
price
|
32%
|
18%
|
6-10% over listing
price
|
17%
|
19%
|
11-15% over listing
price
|
7%
|
9%
|
16-20% over listing
price
|
4%
|
12%
|
21-25% over listing
price
|
1%
|
9%
|
26-30% over listing
price
|
1%
|
6%
|
30%+ over listing
price
|
0%
|
3%
|
What are you doing
or planning to do to get ahead of the competition?
|
Spring
2021
|
Fall
2021
|
Check listings
websites every day
|
40%
|
34%
|
Make an offer within
48 hours of seeing a home
|
n/a
|
22%
|
Set a price alert to
get notified as homes hit the market
|
24%
|
20%
|
Put more than 20%
cash down payment
|
22%
|
25%
|
Put down a larger
earnest money deposit
|
18%
|
19%
|
Offer all
cash
|
13%
|
16%
|
Offer above asking
price
|
13%
|
19%
|
Have my agent write
letters to homeowners in neighborhoods I'm interested in
|
11%
|
14%
|
Ask for no money for
repairs after inspection
|
12%
|
13%
|
Go over my
budget
|
n/a
|
22%
|
Forgo contingencies
like inspections and appraisals to make the deal
|
9%
|
7%
|
Compete in a bidding
war
|
n/a
|
8%
|
Make an offer on a
home sight unseen
|
n/a
|
13%
|
I don't plan to use
any tactics to get ahead of other buyers
|
21%
|
9%
|
Where do you plan
to relocate?
|
Spring
2021
|
Fall
2021
|
Within my current
city/town
|
40%
|
47%
|
To a different
city/town within the same state
|
42%
|
36%
|
To a different
state
|
17%
|
16%
|
Outside of the
U.S.
|
1%
|
1%
|
Of the following,
which features in a home are most important to you?
|
Spring
2021
|
Fall
2021
|
Garage
|
40%
|
30%
|
Updated
kitchen
|
37%
|
30%
|
Large
backyard
|
32%
|
35%
|
Quiet
location
|
35%
|
26%
|
Updated
bathrooms
|
26%
|
22%
|
Outdoor living
area
|
17%
|
13%
|
Open floor
plan
|
21%
|
18%
|
Space for
pets
|
24%
|
18%
|
Finished
basement
|
15%
|
20%
|
Guest room
|
9%
|
20%
|
Not in flood
zone
|
17%
|
14%
|
Home
office
|
13%
|
10%
|
Large square
footage
|
14%
|
15%
|
Newly
built
|
8%
|
11%
|
Broadband internet
availability
|
18%
|
12%
|
Pool/spa
|
7%
|
12%
|
Completely
renovated
|
10%
|
10%
|
Good public-school
district
|
17%
|
16%
|
Solar
panels
|
6%
|
10%
|
Walkability to
neighborhood amenities
|
15%
|
12%
|
Close proximity to
family/friends
|
11%
|
9%
|
Person/Man
cave
|
7%
|
9%
|
Not in fire-hazard
zones
|
7%
|
10%
|
Guest
house
|
4%
|
7%
|
Proximity to
greenspace (parks, hiking trails, etc.)
|
8%
|
6%
|
Short commute
time
|
12%
|
8%
|
Mother-in-law
suite
|
4%
|
4%
|
Small square
footage
|
2%
|
2%
|
Small
backyard
|
10%
|
7%
|
Other
(specify)
|
3%
|
0%
|
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 25 years ago, and today through
its website and mobile apps offers a marketplace where people can
learn about their options, trust in the transparency of information
provided to them, and get services and resources that are
personalized to their needs. Using proprietary data science and
machine learning technology, Realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
Realtor.com® is a trusted provider of consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. For more information, visit Realtor.com®.
Media Contact
nicole.murphy@move.com
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SOURCE Realtor.com