US Real Estate: Americans are Planning to Buy a Homes
- Over half (54 percent) of Americans say they are likely to buy a home in the next five years, up 12 percent compared to the results of last year’s survey
- Over three quarters of buyers set a budget before beginning their home search and stick
- Ninety percent of prospective first-time buyers are or plan to get preapproved for a mortgage before making an offer on a home
Just over half (54 percent) of Americans say they are likely to buy a home in the next five years – up 12 percent from last year – according to the 2017 BMO Harris Bank Homebuyers Report. In addition, Americans surveyed are willing to pay an average of $277,000 for a home and will average a 32 percent down payment.
The report, conducted by Pollara, also found that:
- Among likely first-time buyers, 80 percent plan to get preapproved before making an offer and 10 percent are already preapproved
- Around four-in five will set a budget before looking for a home
- The majority (65 percent) of those looking to buy a new home will consult a real estate agent, while 61 percent said they will visit online real estate websites and 38 percent will seek recommendations from friends and family
“Future buyers are encouraged about their prospects for a home purchase in the near future, and they’re keeping a healthy budget top of mind,” said Steven Zandpour, Senior Vice-President and Head of Retail Banking for Chicago Metro North, BMO Harris Bank. “Home ownership is a fulfilling goal for many and it doesn’t have to be a cumbersome process. Our mortgage specialists aim to walk each of our customers through each step, helping them along the journey and understanding what matters to them the most.”
According to the report, 70 percent of American homeowners spent six months or less looking for a new home before they made a purchase. In addition, 10 percent bought their home without participating in an active real estate search – or even any plan to buy at all – because a specific property caught their attention.
The report also found that Millennials (the generation born between 1982 and 2004) are more likely to use a mobile device as a resource to help in their home search (37 percent). In addition, Millennials are more likely than older age groups to rely on recommendations from friends and family (45 percent) when conducting a home search.
To learn more about home buying and for resources to help consumers in their search, visit: www.bmoharris.com/YourFinancialLife.
The survey results cited in the BMO Harris 2017 Home Buying Report, conducted by Pollara, are compiled from a random sample of 2,505 Americans 18 years of age and over between March 13 and March 20, 2017. A probability sample of this size would yield results accurate to ± 1.96 per cent, 19 times out of 20.