Over Half of Americans Planning on Buying in the Next 5 Years

According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations.

Those Looking to Buy

* 74% of those looking to buy a new home will consult with a real estate agent
* 59% said they will visit online real estate websites
* 37% will seek recommendations from friends and family
* 78% plan to get pre-approved before seriously searching for a home

 Those Who Already Own

* 75% of current homeowners set a budget before looking for a home, and 16% ended up spending less while 13% went over their budget.
* 63% of American homeowners spent under six months looking for a new home before they made a purchase.
* 8% bought their home without participating in an active real estate search - or even any plan to buy at all - because a specific property caught their attention.

The last point is very interesting: Of those who purchased a home, 8% bought “without any plan to buy at all”. A property caught their attention and they acted on it.

Why Are More People Not Planning Their Next Move?

Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? An article by Fannie Mae reveals evidence that a large number of homeowners are dramatically underestimating the equity they have in their current home. The report explains that:

“Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for #mortgages, selling their homes, and buying different homes.”

Bottom Line

Let’s meet up to determine the actual equity you have in your house and to take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted. http://www.simplifyingthemarket.com/en/2016/04/12/over-half-of-americans-planning-on-buying-in-the-next-5-years/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage