Prospective homebuyers may be running out of patience for home prices and interest rates to fall before buying property, according to new data from the Bank of America (NYSE:BAC) Homebuyer Insights Report.
According to the report, 62% of buyers are willing to wait for prices and/or rates to fall before buying a home – six months ago, that share was 85%. And it appears the lack of patience is being felt – sales of new single-family houses in September were a seasonally adjusted 759,000, up from 679,00 sales in April.
“When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you’re ready financially and you can find a home that fits your needs,” said Matt Vernon, head of consumer lending at Bank of America. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.”
As for prospective sellers, half of current homeowners said they would be encouraged to sell if their dream home became available (50%) and/or if they found a more affordable area (54%) – even if it meant paying a higher interest rate for a new mortgage. Additional motivations sellers include job opportunity or job relocation (40%), nicer neighborhood amenities (40%), the need for a larger home or more rooms (38%) and moving to a home with rental potential (21%).
Nearly two-thirds (63%) of these homeowners said owning a home is one of their greatest personal achievements – more than raising a family (50%), being in a committed relationship (32%) and/or overcoming a significant challenge (25%).
