Homebuyers nationwide stay engaged in the face of challenges
Talk of recession is in the air, mortgage rates are rising and home listing prices remain high, even continuing to climb in some areas — like Boulder County.
So what does that mean for attitudes about home buying?
Among nationwide homebuyers who say we are currently in a recession, nearly 46% report it will have no effect on their decision to purchase a home in the next six months, according to a recent Realtor.com survey of website visitors of listings and search results. That number has increased from prepandemic 2019 when 43.9% were planning to buy a home within the next six months, but has decreased from nearly 50% in 2021.
Additionally, more than 24% of 2022 survey respondents say a recession will make them more likely to purchase a home.
A large number of buyers in all stages of home purchasing — 40.5% — think the U.S. economy is already in recession. An even greater number of firsttime buyers — 45.3% — believe the recession is already here, the survey results show.
This year has been challenging for buyers, making their hold on a positive attitude toward home buying notable. Home prices saw double digit increases in much of the nation throughout the year and mortgage rates have continued to rise.
In Boulder County, August median prices increased year over year, according to statistics from the Boulder-longmont Realtors trade association (BOLO Realtors). Increases ranged from less than 3% in the Plains market-area to more than 46% in Niwot. Boulder’s median price rose 14%,
Erie 17%, Lafayette 21.3%, Longmont 14.5%, Louisville 20%, Lyons 17.6%, the
Mountains 4.3%, and Superior 12.7%, reports BOLO Realtors.
For first-time homebuyers, nationwide rents rose significantly reaching “new record levels for 17 months in a row. It’s no wonder that 34.5% of all buyers and 40.5% of first-time homebuyers in our survey report that their budget has been a challenge to their home-buying experience,” writes Realtor.com.
On the flip-side, competition among homebuyers has begun to ease. Only 9.4% of buyers across the country reported being overbid, a decrease from 12.6% in April 2022. But first-time homebuyers still face a competitive market, with a greater percentage — 12.2% — reporting being overbid.
Contrary to a national increase in the number of days homes are for sale, most areas in the Boulder Valley have seen homes stay on the market for fewer days in August this year compared to 2021, according to the BOLO Realtors statistics. Homes in the Mountain marketarea are for sale for 50 days on average — down 25%, Boulder homes are on the market 37 days — down 23%, and Niwot homes sit for 38 days —19% fewer days on average year over year than 2021.
Across the nation, buyers are more willing to move crosscounty and explore smaller markets. Nearly 50% are looking for a home in a small town or rural area. Some are also seeking smaller homes with 8.4% seeking condos and apartments, the highest percentage since January 2019, reports Realtor.com. In an all-time survey high, 33.6% of buyers are looking at purchasing in another state.
In a randomized survey of visitors to listing and search result pages on the site, Realtor. com asked respondents reasons for visiting the site, engagement with the housing market, and how current market conditions are impacting their behavior.
Overall survey results paint a picture of belief in homeownership as a positive financial choice and buyer savviness to prepare to buy during a drop in home prices and activity.
See the full survey results at www.realtor.com/research/july2022-site-visitor-survey