TRULIA SURVEY: 75 PERCENT OF AMERICANS SAY IT’S BETTER TO BUY A HOME NOW THAN NEXT YEAR, WHILE ONLY 32 PERCENT AGREE NOW IS A BETTER TIME TO SELL
Trulia Identifies Top Consumer Real Estate Regrets To Help Today’s House Hunters Prepare For This Spring’s Hypercompetitive Market
SAN FRANCISCO, April 17, 2013 –Trulia Inc. (NYSE: TRLA), a leading online marketplace for home buyers, sellers, renters, and real estate professionals, today released the results of its Real Estate Regrets survey. The latest findings reveal the most common housing mistakes today’s home buyers and renters should avoid during spring house hunting season. Harris Interactive conducted the online survey on behalf of Trulia among 2,130 U.S. adults, age 18 and over, between March 22 and 26, 2013.
Eager Buyers Matched with Patient Sellers Fueling Today’s Competitive Market
Buyers feel the pressure of rising home prices this spring: 75 percent of Americans say it’s better to buy a home now than a year from now. However, fewer than to 1 in 3 Americans (32 percent) agree it would be better to sell now than a year from now. Patient sellers, along with little new construction, fewer foreclosures, and underwater borrowers, have pushed inventory to a 12-year low, creating a seller’s market. This year’s housing season will likely cause aggressive buyers to scramble in order to try to win tough bidding wars and overcome stiff competition–putting them at risk of making real estate mistakes they will regret.
Top Real Estate Regrets: Renting instead of Buying, Small Home Size, and Lack of Financial Security
More than half of Americans who were involved in the process of choosing their current home (52 percent) have at least one regret about their current home or the process of choosing it. A common theme of the top regrets is Americans not investing enough in their home. Top regrets include choosing a home that’s too small, renters wishing they had bought instead of renting, homeowners regretting not remodeling more, and not being financially secure. When comparing homeowners to renters who were both involved in the process of choosing their current home, renters are more likely to have housing regrets – 56 percent versus 50 percent. Among different age groups who were involved in the process of choosing their current home, Millennial homeowners (age 18 to 34) are far more likely to have housing regrets than homeowners age 55 or older – 75 percent versus 36 percent.
Note: excludes homeowners and renters not involved in the process of choosing their current home. Respondents could select as many as apply.
Recent Home Buyers Express Less Regret vs. 2003-2009, but Tide May Change Due to Low Spring Housing Inventory
As the market improved, housing regrets became less common than they were during the housing bubble. Among homebuyers who moved into their current home between 2010 and 2013, fewer had regrets compared to those who moved into their current home from 2003 to 2009 (55% vs. 63%, respectively). Better home affordability, lower mortgage rates, and conservative bank lending probably helped recent buyers avoid major housing regrets in comparison to those who purchased when prices were higher and lending practices were more lax. However, the pressure caused by this season’s tight inventory may rush today’s buyers into real estate decisions they might later regret.
Note: excludes homeowners not involved in the process of choosing their home.
FROM JED KOLKO, CHIEF ECONOMIST
FROM MICHAEL CORBETT, TRULIA’S CONSUMER SPOKESPERSON
This survey was conducted online within the United States by Harris Interactive on behalf of Trulia from March 22-26, 2013 among 2,130 adults ages 18 and older, among which 1,370 are homeowners and 706 are renters. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact firstname.lastname@example.org.
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