According to a Redfin survey of 750 homebuyers in February, 25% were looking to purchase because their rent was too high, 5% increase from November, and 13.5% increase from August.
In each survey, buyers cited most frequently that a major life event, such as the birth of a child or marriage, most influenced their decision to buy.
Affordability and Competition Headline Buyers’ Concerns
Despite buyers continuing to cite affordability as their highest concern, inventory woes also gaining attention. 20% of buyers were worried that there weren't enough houses to choose from, an increase of 4% compared to the previous quarter. Additionally, the percentage of buyers indicating that there was too much competition from other buyers jumped from 11% to 16%.
Buyers Expect Price Gains
53% of respondents believed that their home prices would increase soon, up 5% from the previous quarter. 13% of those expecting price increases, felt that their homes would increase in value significantly, up from 10%.
Mortage Rates are Relevant
67% of buyers said mortgage rates were important or very important in their decision to buy, up by 2% from the previous quarter. This may be due to the Federal Reserve's rate hike back in December, allowing buyers to feel confident that rates will stay the roughly the same for the next 6 months; there was a reduction from 14% to 10% of respondents who felt that rates would significantly increase.
Have you been a home buyer in the last two years? We'd love to hear YOUR reasons for buying instead of renting.