What are the main motivators in today’s home buying decisions?
According to Realtor.com, here are the top reasons that triggered buyers to their decision of considering to buy a home :
“I’m tired of my house” – The average time in a home has risen since the last recession as more owners found themselves underwater and faced price declines from 2007 to 2011. After four years of above-average price appreciation, confidence in the market has returned.
Interest rates are attractive – The average 30-year fixed-rate mortgage reached a low in January at 3.63 percent and continues to average under 4 percent. Last week, Freddie Mac reported the 30-year fixed-rate mortgage average 3.86 percent. That’s a big discount compared to the average monthly 30-year fixed conforming rate since 1971, which was 8.39 percent.
Home prices are favorable – The price motivation has been decreasing. In June, the U.S. surpassed its 2006 peak as home prices zoomed to a record high, but on an inflation-adjusted basis, home prices today are still about 20 percent beneath the peak at the height of the housing bubble.
“I’ve got more money to spend” – Active homebuyers say an increase in income is their primary trigger for buying a home now.
A change in family circumstances – More people are expanding their families which means they need more room and a bigger home!
