The 2022 ServiceLink State of Homebuying Report highlights
how low housing inventory and high home prices are leading the next
generation of buyers to consider alternative paths to
homeownership
PITTSBURGH, April 5,
2022 /PRNewswire/ -- With the pandemic still
affecting many parts of the housing industry and homebuying
experience, buyers are adjusting their behaviors and expectations
to navigate today's competitive market conditions. A new survey
report, released today from ServiceLink, part of the FNF family of
companies and the nation's premier provider of tech-enabled
mortgage services, analyzes generational trends among recent
homebuyers, their attitudes toward alternative paths to
homeownership and the role technology plays throughout the
process.
The 2022 ServiceLink State of Homebuying Report (SOHBR) features
insights from 1,000 homeowners who purchased a home within the past
five years. This comprehensive report examines shifting experiences
and approaches to homebuying and refinancing and changing attitudes
about the role technology plays in the process.
Key findings of the report include:
Homebuyer demographics are changing: Gen Z and millennials
will play a big role in the housing market in 2022
- 32% plan to refinance this year (compared to 23% of Gen X and
9% of baby boomers)
- 26% are likely to purchase a new home this year (compared to
12% of Gen X and 6% of baby boomers)
- 23% would purchase a home without seeing it in person first
(compared to 16% of Gen X and 5% of baby boomers).
- 55% either have bought, or are willing to buy at auction
(compared to 50% of Gen X and 23% of baby boomers)
Buyer fatigue is real: Complicated market conditions are
leading homebuyers to put off purchasing a new home
- Almost a quarter (24%) of recent homebuyers considered buying a
new home in the last five years, but ultimately decided against
it
- Nearly half (44%) said options were too expensive (as compared
to 31% in the 2021 SOHBR)
- 29% said their financial situation changed (as compared to 24%
in the 2021 SOHBR)
- 28% cited low housing inventory (as compared to 8% in the 2021
SOHBR)
Auction is gaining traction: Homebuyers are considering
alternative routes to homeownership
- One-third of respondents (33%) would consider buying a home at
auction while 11% of respondents have already purchased a home this
way
- Gen Z/millennials are the most open to buying an auction
property as 55% have either already purchased one or would be
willing to do so (compared to 50% of Gen X and 23% of baby
boomers)
- Top motivations for buying a home via auction: potential cost
savings (72%), a faster homebuying process (44%) and being able to
bid remotely via an app or online (37%)
- The primary use for a home purchased at auction: fix and flip
(31%), primary residence (29%) and rental income (23%). Gen
Z/millennials are most likely to buy at auction to use the property
for rental income (28%), compared to 19% of Gen X and 11% of baby
boomers.
Technology eases the process: Homebuyers continue to see the
benefit of technology in improving the homebuying
experience
- Convenience/ease of use (72%) and time savings (60%) prove to
be the biggest benefits of using technology in the homebuying
process, across age and gender. This is similar to the results of
the 2021 SOHBR where 68% cited convenience/ease of use and 68%
cited time savings
- 83% of baby boomers said convenience/ease of use was the top
benefit of using tech (compared to 66% of Gen Z/millennials and 70%
of Gen X)
Rethinking refinance: The refinance boom shows signs of
slowing
- Securing a better mortgage rate (62%) was the number one reason
for homeowners to refinance
- One-quarter of respondents refinanced their current home. Of
those that refinanced, Gen Z and millennials led the subset at 35%
(compared to 19% of Gen X and 16% of baby boomers)
- 64% say they are not very likely or not likely at all to
refinance in 2022 (as compared to 50% in the 2021 SOHBR)
"As bidding wars, low inventory and rising interest rates
continue to intensify the competition, buyers have had to get
creative in order to come out ahead in this challenging real estate
market," said Dave Steinmetz,
president of origination services, ServiceLink. "Our study suggests
that a growing number of buyers are embracing technology, and many
are open to new pathways to achieve homeownership. This indicates
there is an opportunity for lenders to provide more targeted
resources and guidance to buyers throughout their homebuying
journey."
Read the full report here.
Methodology
The 2022 ServiceLink State of Homebuying Report was completed
online among 1,000 recent homebuyers who purchased a home in the
last five years, ages 18+ in the U.S. Interviewing was conducted by
Schlesinger Group, a research panel company, between January 7- January 13, 2022.
About ServiceLink
ServiceLink is the nation's premier provider of digital mortgage
services to the mortgage and finance industries. ServiceLink leads
the way by delivering best-in-class technologies, a full product
suite of services and proven experience, built on a foundation of
quality, compliance and service excellence. ServiceLink provides
valuation, title and closing, and flood services to mortgage
originators; and default valuation, integrated default title
services, vendor invoicing and claims audit services, as well as
field services and auction services to mortgage servicers.
ServiceLink helps clients in the lending industry and beyond
achieve their strategic goals, realize greater efficiencies, and
better serve their customers. For more information about
ServiceLink, please visit svclnk.com.
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