Buying a Home Can Be Stressful, No Question
May 8, 2015 • Posted in Industry Surveys & Studies
It’s no secret that buying a home can be stressful. Just how stressful was made clear in a recent survey that found that people are more anxious about the homebuying process (70 percent) than they are about getting a root canal (64 percent)!
JPMorgan Chase’s national survey of potential homebuyers also found that one-third of homebuying couples have bickered over the process (we were, frankly, expecting a higher percentage), with men more likely than women to go beyond their agreed-upon budget limit to get the home they want.
“It’s understandable why first-time homebuyers are anxious about the process, but preparation is the best defense,” Cecelia Barbieri, senior vice president of marketing for Chase Mortgage Banking, said in a statement accompanying the survey. That’s a sentiment shared by Pacific Union’s real estate professionals, who work to bring down stress levels by helping buyers become familiar with the homebuying process and planning ahead to get the home they want.
The Chase survey also found that a solid majority of potential buyers (62 percent) believe now is a better time to buy a home than it was last year, and 30 percent plan to purchase a property in the next 18 months.
Rising rental costs and historically low interest rates are among the top reasons buyers are eager to close a deal in the coming months. Interest rates on 30-year mortgages averaged 3.80 percent this past week, according to Freddie Mac, and are expected to rise appreciably by 2016.
While potential homebuyers are optimistic that now is a good time to buy, they expect challenges along the way. Buyers are concerned about finding a home that fits within their budget (56 percent) and is located in a good neighborhood (56 percent).
Seventy-five percent worry that their offer will be outbid by others, and 60 percent anticipate that they may need to compromise and buy a smaller home, or consider other neighborhoods outside their top choices, due to rising prices.
“Buyers are clearly concerned about housing inventory and rising prices, especially during the competitive spring buying season,” Barbieri said. “But the research shows that interested buyers are optimistic and ready to act on their goals. In fact, 73 percent said they’d give up things like eating out and taking vacations in order to buy their dream home.”
(Illustration: Flickr/Blush Printables)