Most consumers keep buying-renting options open
All consumers need a place to live, and many would prefer owning a home of their own. But they look at rising prices and lack of inventory in their market and many decide to rent their residence, at least for a while.
They often search for both a homebuying opportunity and a suitable rental property.
It takes more than 10 weeks to find a new home to rent — and more than 12 weeks for those with low incomes or those searching in tight rental markets, according to an analysis of the Zillow Group Report and U.S. Census data. For home buyers, the search is longer — 17 weeks.
To prepare the report, the group surveyed more than 13,000 renters, hom- eowners, buyers and sellers about their home search, aspirations, and preferences.
“More than half — 54 percent — of buyers do not get the first home on which they make an offer. First-time home buyers make up 47 percent of all buyers, so it’s feasible for many potential buyers to keep their options open and return to renting if they aren’t successful purchasing a home.
“The line between renting and buying is blurry, and that’s a sign of the times,” said Zillow chief marketing officer Jeremy Wacksman. “It’s difficult and time-consuming to find a home to move to, especially in competitive housing markets.
“With first-time buyers competing for a limited number of homes on the market, savvy shoppers have a Plan B, hoping to buy if it works out, but willing to sign a lease for a home if they don’t make a deal by the time they need to move.”
The report noted the actions taken by young millennials and other age groups.
“Among those who bought a home in the last 12 months, 66 percent of millennials considered renting as well. Just over half (54 percent) of Generation X buyers considered renting, and 32 percent of Baby Boomer buyers.
“Younger renters are also more flexible when looking for a home to rent — 63 percent of millennials and 59 percent of Generation X renters considered buying while looking for a rental. Among renters over 50, most did not consider buying at all.”
Q: How does moving to a new home affect kids?
A: That was the subject of a recent study. Here’s a portion of the report: “Families moving with children can face a lot of complications and time pressures during a real estate transaction. Fifty-three percent of families with children under the age of 18 report that the most difficult task in the home search process is finding the right property in the right location, according to the National Association of Realtors.
“Many families need to factor in the quality of schools and activity offerings for their children as well as finding a home with suitable space and in proximity to their job too.”
Q: Are mortgage applications still declining?
A: Yes. Mortgage applications decreased 1.2 percent from one week earlier, according to data at this writing from the Mortgage Bankers Association’s weekly mortgage applications survey.
“The refinance share of mortgage activity remained unchanged at 62.7 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.4 percent of total applications.”