More potential home buyers are poised to enter the market this year, according a national survey by Chase, “Insights: From the Mind of the Homebuyer.” Three in 10 potential buyers say they plan to purchase a home in the next 18 months, with 32 percent of respondents citing low interest rates and 20 percent attributing rising rental costs as reasons for getting off the sidelines.
The survey also found that 62 percent of interested buyers believe that now is a better time to purchase a home compared to last year. And 20 percent of buyers surveyed say they want to upgrade from their current home.
But the survey did find concerns about affordability and competition. Nearly 70 percent of prospective home buyers say they worry that they missed the chance to buy at the best time because of rising home prices. Fifty-six percent say they are concerned about finding a home that fits within their budget and that’s located in a quality neighborhood. Bidding wars are also a concern, with three out of four buyers worrying they will be outbid by others.
“Buyers are clearly concerned about housing inventory and rising prices, especially during the competitive spring buying season,” says Cecelia Barbieri, senior vice president of marketing for Chase Mortgage Banking. “But the research shows that interested buyers are optimistic and ready to act on their goals. In fact, 73 percent said they’d give up things like eating out and taking vacations in order to buy their dream home.”
Quick stats from the survey:
- 43 percent of potential home buyers feel that getting a mortgage will be easier this year.
- 49 percent of women surveyed say they are more conservative than their partner and don’t want to go beyond their agreed-upon budget, while 39 percent of men say they are less conservative than their partner and are willing to push their budget limit to get the home they want.
- Only one in four interested buyers correctly answered a series of questions about home buying, including how annual percentage rates work, down payments, and lenders.
The information in this infographic comes from a video of NAR Chief Economist Lawrence Yun talking about his 2015 housing market expectations. He expects existing-home sales to rise about 7 percent in 2015 behind a strengthening economy, solid job gains and a healthy increase in home prices.
Watch the video of Lawrence Yun’s forecast.
Read the news release about Lawrence Yun’s forecast.
From the National Association of Realtors:
For the second consecutive month, existing-home sales were on the rise in October, now above year-over-year levels for the first time in 12 months, according to the National Association of REALTORS®’ latest housing report.
Existing-home sales rose 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October. Sales now are at their highest annual pace since September 2013.
“Buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory, and stabilizing price growth,” says Lawrence Yun, NAR’s chief economist. “Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases.”
Read the entire article here.
Work has begun on the Spring District, a 36 acre mixed-use urban neighborhood. The 16 city blocks near the intersection of SR 520 and I-405 will ultimately feature commercial, residential and retail including hotels, restaurants and shops.
The $2.3 billion project is one of the largest urban development projects on the West Coast. Work is being done in phases, with the eastern and southernmost blocks developed in Phase One, including office and residential buildings as well as the central park space. Development will eventually move north towards the future East Link rail station.