Surveys Reveal Housing Demand is Soaring

I want to tell you about 2 consumer surveys that I read about in the DBJ last week. First, eXp Realty surveyed more than 2000 people planning to buy or sell a home in the next year or who have bought a home in the past year. Here is what they found—
· 73% of people believe that owning a home is more important now because of Covid.
· Specifically 80% of Millennials believe that owning a home is more important now due to Covid.
· 87% of respondents said they believed people should be homeowners by age 40.

LendingTree completed a survey of 2,050 consumers revealed these finding—
· 88% of Americans would rather own a home than rent a home.
· 48% of renters said they were worried they’ll never be able to own a home.
· The biggest hurdle for renters to buy a home is the down payment as 54% cited this hurdle.
· 36% said buying a home in their area was too expensive.
· 32% said their credit score made it difficult to get approved for a mortgage. Here are my thoughts—
· The demand to be a homeowner is OFF THE CHARTS, thus home prices will probably continue to soar.
· Second, we as professionals need to do a much better job of educating people as you only need 3% down to buy a home and down payment assistance loans and grants are available.
· Next, buyers only need a 580 Fico score to be approved for a FHA loan with 3.50% down and a 580 Fico Score for a VA loan with NO money down.
· Finally, “yes” some renters probably can’t afford to buy a home where they are renting. For example, last week I talked to someone who is renting a Wash Park house for $1600 a month and buying a home would probably double his payment. But, there are other areas of town that are far more affordable. Thus, buyers need to be much more open for areas where homes are more affordable and then 3-5 years later sell this home and buy a home in a more desirable neighborhood. Or buy the cheapest home in a more desirable neighborhood as their first home. Often Millennials want to buy their parents’ Trophy Home in the perfect neighborhood as their first home and 95% of them can’t afford to do this.