Consumer confidence in real estate industry rises

How are homeowners and buyers feeling about the current market? More favorable than in the past, according to a recent survey by Berkshire Hathaway HomeServices.

And they want Realtors® to guide them in the process. Prospective homebuyers are more likely to find a Realtor® to help with financial aspects in their homebuying process, and they are relying on agents for the confidence to trust their instincts. Consumers are also looking for tools and technology provided by Realtors®, as well as explanations on how a specific home can fit their needs.

Sixty-one percent of current homeowners and 65 percent of prospective homebuyers consider the current real estate market either favorable or very favorable. Most cited low interest rates, an improving economy and more homes on the market as the top reasons for their positive outlook. This is the first time that consumer attitudes toward the housing industry rose since the survey initially began in February 2015.

More than three-quarters of prospective homeowners said that 2016 is the year to buy a home, which is an 11-point increase from December 2015. Additionally, they believe that housing inventory and new lending requirements will not be detrimental to their homebuying process, which are two factors that previously concerned them. However, 72 percent are still concerned about the affordability of homeownership.

As for current homeowners, they are more likely to say this is a good year to sell.

Both homebuyers and homeowners said they would compromise for their “ideal” home. More than half of current homeowners and 46 percent of potential homeowners said a swimming pool was negotiable, while 40 percent of homeowners and 31 percent of possible homebuyers said the availability of public transportation was a compromise they could make. A basement, and proximity to work were the next two compromises they were willing to make.

“We expect a busy spring home-buying season with momentum extending through the year,” said Gino Blefari, CEO of HSF Affiliates. “As millennials increasingly embrace homeownership, it will add to a domino effect among move-up buyers that should ease tight inventory in many markets and bring more balance to real estate overall.”