Consumers
are beginning to feel more positive about homeownership than they were even six
months ago, a recent survey by Trulia revealed. In fact, one in four surveyed
consumers marked an increased confidence and 31% of renters plan to purchase a
home within the next two years.
Millennials,
consumers ages 18 to 34, are often the most skeptical, as they’ve grown up
during the years of boom and bust. However, of the Millennials polled, 93% plan
to buy a home at some point. Interestingly enough, 43% of young adults are
already homeowners. “Millennials have been shaken, not scarred by the housing
bust,” said Jed Kolko, Trulia’s Chief Economist.
“Nearly
all of them want to own a home someday if they’re not homeowners already. But
many of them think today’s low prices and low rates will last. They may be in
for sticker shock if the cost of homeownership has returned to normal levels by
the time they’re ready to buy.”
2012
was the year of low housing inventory, down 43% compared to 2010, which created
many limitations for potential homebuyers. But 22% of homeowners said they will
certainly consider selling their home in 2013, paving the way for a broader
inventory moving forward. Specifically, homeowners who bought their homes
between 2010 and 2012 may consider selling as their home value most likely
increased since the time of purchase, allowing them to sell at a profit.
“2013
could be the year that inventory turns around, just as 2012 was the year that
prices started recovering,” said Kolko. “Homebuyers need inventory to choose
from, and with fewer foreclosures on the market, new inventory will come from
new construction or homeowners wanting to sell. Rising prices will bring out
more sellers, especially if price increases lift them back above water.” Source:
Trulia
Mike Ervin, Mortgage Banker
NMLS # 282715
(650) 735-5261
www.mikeervin.com
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