Half of Americans are brought to tears while buying a home
Shopping for a home is a stressful process, even under ordinary circumstances. But the condition of today’s housing market is anything but ordinary — and buyers are feeling the pressure. According to a new Zillow survey, 50% of buyers in the U.S. said they cried while purchasing a home.
Housing prices have grown at a record pace over the past year amid rising mortgage rates and rabid demand. Coupled with the severe inventory shortage, these conditions have fueled bidding wars and a heightened sense of panic among Americans, particularly the younger generations.
The survey revealed that more than 65% of Gen Z buyers and 61% of millennial buyers were brought to tears at least once during their home-buying journey.
In today’s low-inventory market, homes are receiving multiple offers, often selling for over the list price. In April, nearly half of all homes sold in the U.S. went for over the asking price, up from 37% a year ago.
With 23% fewer homes on the market than a year ago, many buyers opt to waive crucial contingencies to stand out among the fierce competition. Zillow found that nearly 40% of buyers waived a contingency on at least one of their offers, such as their financing or inspection contingency.
Additionally, buyers planning to finance their purchase with a home loan are losing out to others who can pay in cash. According to the survey, nearly 30% of recent buyers said they lost to an all-cash buyer at least once.
With all of the obstacles to overcome in today’s fast-paced market, it’s no surprise that buyers are overwhelmed. Zillow reported that nearly 90% of recent buyers said at least one aspect of the home-buying process was stressful.
Among the buyers surveyed, 62% were stressed about being able to find a home within their budget, 61% were stressed about not having enough homes to choose from, and 58% were stressed about finding a home in their preferred neighborhood.
“Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional,” said Zillow home trends expert Amanda Pendleton. “When you make an offer on a home, you have likely envisioned your life there. If you lose out on that home to a stronger offer, it can feel like losing a future you have already started planning. These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.”
Updated: Boston Real Estate Blog 2022
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HouseHunt, Inc. reported that 50% of homes purchased in the U.S. for the third quarter of 2008 were by first-time buyers.
Here’s a summary of other findings in the survey.
- Buyers searched a median of 10 weeks and viewed 10 homes
- Nearly 9 out of 10 buyers consider their home a good investment
- Nearly 50% see their home as a better investment than stock
- Median age of home sellers was 47
- Around 75% of sellers were married couples, had been in their home six years and moved a median distance of 19 miles
- 42% of sellers offered incentives to attract buyers
- Typical home sold for 96% of listing price.
- 52% of buyers were trading up, 22% were downsizing.
- 81% of sellers used full-service brokerage.
- 9% chose limited brokerage service.
- 9% used minimal service (such as listing on a multiple listing service.)
- 87% of buyers used the internet to search for a home.
- 48% of buyers attended open houses. (looks like open houses are on the way out)
- 47% looked at print or newspaper ads. (same with newspapers)
- Fewer rely on home book/magazine, home builders, television, billboards and relocation companies
- 34% of buyers first learned of the home they purchased from an agent
- 32% first learned of the home from the internet
- 15% first learned of the home from a yard sign
- 7% learned of the home from a friend, 7% from builders, 3% from print ad, 2% directly from seller and 1% from a home book/magazine
- 87% of home buyers who used the internet to search purchased their home with a real estate agent
- 75% of respondents purchased a detached single-family home
- 55% of all homes purchased were in a suburb or subdivision
- 17% of homes purchased were in urban areas
- 16% of all homes purchased were in a small town
- 10% of homes were in a rural area
- 13% of transactions were for-sale-by-owner
- Median home price for sellers who used an agent was $211,000
- Median home price for sold-by-owner homes was $153,000 (however, unassisted sellers were more likely to be in a rural area/small town, home was more likely to be a mobile or manufactured home, and owners average income was lower than that of sellers using agents)
- Only 1% of sellers chose an agent based on his or her commission. (I thought this would be a lot higher)