Over 40% of Homeowners Are Equity-Rich – According to ATTOM Data Solutions’ newly released 2021 U.S. Home Equity & Underwater Report, homeowners are continuing to see the values of their homes grow, rapidly increasing the equity in their properties.
About 42% of mortgaged residential properties in the U.S. were considered equity-rich in the fourth quarter of 2021, as compared to 30.2% in the fourth quarter of 2020. Simply stated, the combined estimated amount of loan balances secured by those properties was no more than 50% of their estimated market values.
Source: “Booming Housing Market Powers Further Rise in Homeowner Equity Across U.S. in Fourth Quarter,” ATTOM Data Solutions (Feb. 3, 2022)
Buyers’ Wants Are Changing – Based on NAHB’s newly released report, What Home Buyers Really Want, the size of new homes is increasing as the pandemic continues and home shoppers look for more space to spread out. The average size of a new home has risen to 2,524 square feet.
Overall, new-home buyers also are showing a greater desire for exercise rooms, home offices, and patios and a desire to expand their outdoor spaces, with a particular interest in homes with front porches.
The five new-home features most popular among all generations include:
• Laundry rooms
• Exterior lighting
• Ceiling fans
• Patios
• Walk-in pantries
Source: “NAHB Identifies Top Features and Design Trends for 2022 Across Generations,” National Association of Home Builders (Feb. 9, 2022)
Many Feel Uneducated About Homebuying – According to a Consumer Affairs survey of more than 1,000 people, forty-two percent of Americans say they do not know enough about the homebuying process.
Nearly thirty percent of current homeowner respondents said they wished they had more knowledge before starting their house hunt.
Fifty-four percent of U.S. homeowners surveyed wish they knew more about their financing and loan options before purchasing a home.
The survey further indicated that buyers wanted to understand more about down payment requirements, how to better compete in the latest housing market, and how debt-to-income ratio calculations factor into mortgage qualifications.
Seventy percent of potential buyers said they do not feel knowledgeable about how to compete in the current seller’s market.
Source: “Financial Goals and Knowledge Gaps,” Consumer Affairs (Jan. 21, 2022)
Buyers Purchasing Older Homes – Based on new research from the National Association of REALTORS®, homes in America are getting older. In 2021, the typical home purchased was built in 1993, 28 years ago.
“Young buyers are more likely to feel the financial pressure of rising home prices and the lack of affordable inventory are more willing to buy a fixer-upper,” says Jessica Lautz, NAR’s vice president of demographics and behavioral insights.
Twenty-three percent of first-time home buyers said they compromised on the condition of the home they purchased in order to find the best location, size, and price for a home.
Eleven percent of young millennials—between the ages 22 and 30—purchased a previously owned home as a fixer-upper, compared to just 3% of buyers over the age of 66, Lautz says. Repeat buyers are more likely to purchase newer homes that need less TLC, using the home equity from their previous home to stretch their budgets.
Source: “With an Aging Housing Stock, What Are Buyers Purchasing?” National Association of REALTORS® Economists’ Outlook blog (Feb. 8, 2022)