Whether Bidding, Buying, or Just Looking,
Homebuyers Show a Bias Toward Action
CHARLOTTE, N.C., May 9, 2023
/PRNewswire/ -- Many hopeful homebuyers – especially those in their
40s and younger – are forging ahead with plans to buy homes despite
believing the market favors sellers, according to Bank of America's
2023 Homebuyer Insights Report. And while more than half of
prospective homebuyers surveyed (55%) believe the market is more
competitive than last year, just as many (54%) plan to either speed
up their home purchases or buy when they originally planned,
including 62% of Gen Z and 55% of Millennial homebuyers.
Yet not all prospective buyers are jumping in. Two in five
surveyed Americans (39%) believe this is a seller's market, while
18% say it's a buyer's market and 31% say it's neither. Buying
challenges included high prices and interest rates (51%); lack of
cash reserves for down payments (37%); and low credit scores (37%).
Still, nearly 40% of those prospective homebuyers said they feel
more confident in their ability to buy a home today versus last
year, compared to 26% who are less confident and 28% who feel about
the same.
"The market is less frenzied as rates have moderated, and that
may be impacting perception," said Matt
Vernon, head of retail lending at Bank of America. "And low
inventory is still creating a highly competitive environment.
Homebuyers are doing the right thing by taking time to understand
the market, weigh their priorities and determine what fits into
their budgets."
Watch Matt Vernon, Bank of
America's Head of Retail Lending, reflect on the Spring homebuying
season learn more about homebuyers' confidence, timelines, and
determination.
Financial security is a motivating force, as homeownership has
historically helped families build long term-wealth. Despite their
younger age, 56% of Gen Z and 56% of surveyed Millennial homeowner
hopefuls plan to purchase in the next two years – nearly on par
with Gen X (58%). Nearly half (47%) of all prospective buyers say
they would buy a home in the current housing market because they
are tired of renting and of rent increases, and 28% want to start
building equity.
Prospective buyers said they'd be willing to put up to 25% of
their monthly income toward mortgage payments for a starter home
and 30% for a forever home, compared to the 29% they'd be willing
to put toward monthly rent. Most prospective buyers plan to
purchase a home with a spouse or partner (55%) while 38% say
they're planning to go it alone.
Real Estate Curiosity Keeping Those on the Sidelines
Active
Even hopeful buyers who may be waiting for the housing market to
cool are still forging ahead in their own way. More than two-thirds
(67%) of prospective buyers are actively looking at homes for sale
– whether they're scrolling through a real estate marketplace app
with a certain budget in mind (52%) and/or visiting open house
events for fun (31%).
Those scanning for homes find it to be an enjoyable pastime
(41%), a way to dream about their future home (37%) and a window
into how others have decorated their spaces (32%). Beyond simply
looking for inspiration, two-thirds (65%) of those who scroll
through listings are interested in what their current budget would
get them if they were to buy today.
Talking with friends and family can also provide first-hand
accounts of potential hurdles and valuable resources during the
homebuying journey. Most people surveyed say they are comfortable
talking with friends about how they came up with their down payment
(82%), but only 17% have directly asked a friend how they were able
to afford the upfront costs. The sharing of information can be
invaluable as only 39% of prospective buyers know how to find down
payment assistance programs.
Whether it's a conversation with a friend, family member or a
lending specialist, discussing the homebuying process early on can
equip hopeful buyers with the know-how they need to feel confident
taking the next step. Visit Bank of America's Home Resource Center
to get started with tools and resources on preparing your finances,
review available grant programs and more.
About Bank of America's Homebuyer Insights Report
Sparks Research conducted a national online survey on behalf of
Bank of America between March 29 and April
3, 2023. A total of 1,000 surveys (500 homeowners / 500
renters) were completed with adults age 18+ who currently own a
home, previously owned a home or plan to own a home in the future.
Survey completions were monitored by gender and age for proper
balancing. The margin of error for the total national quota of
1,000 surveys is +/- 3.1% at the 95% confidence level. The margin
of error for homeowner and renter quotas of 500 surveys is +/- 4.4%
at the 95% confidence level. Select questions allowed respondents
to choose more than one answer, resulting in responses that may
equate to more than 100 percent.
Bank of America
Bank of America is one of the world's leading financial
institutions, serving individual consumers, small and middle-market
businesses and large corporations with a full range of banking,
investing, asset management and other financial and risk management
products and services. The company provides unmatched convenience
in the United States, serving
approximately 68 million consumer and small business clients with
approximately 3,900 retail financial centers, approximately 15,000
ATMs and award-winning digital banking with approximately 56
million verified digital users. Bank of America is a global leader
in wealth management, corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million
small business households through a suite of innovative,
easy-to-use online products and services. The company serves
clients through operations across the
United States, its territories and more than 35 countries.
Bank of America Corporation stock (NYSE: BAC) is listed on the New
York Stock Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America newsroom
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Reporters may contact:
Susan Atran, Bank of
America
Phone: 1.646.599.3300
susan.atran@bofa.com
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SOURCE Bank of America Corporation