Reminder: Millennials want to buy homes!
Consumers are beginning to feel more positive about homeownership than they were even six months ago, a recent survey by Trulia ($18.25 0.25%) revealed. In fact, one in four surveyed consumers marked an increased confidence and 31% of renters plan to purchase a home within the next two years.
Millennials, consumers ages 18 to 34, are often the most skeptical, as they’ve grown up during the years of boom and bust. However, of the Millennials polled, 93% plan to buy a home at some point. Interestingly enough, 43% of young adults are already homeowners.
“Millennials have been shaken, not scarred by the housing bust,” said Jed Kolko, Trulia’s Chief Economist. “Nearly all of them want to own a home someday if they’re not homeowners already. But many of them think today’s low prices and low mortgage rates will last. They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time they’re ready to buy.”
[Also: See the HousingWire Pinterest page to see Trulia American Dream Survey 2012 Infographics.]
2012 was the year of low housing inventory, down 43% compared to 2010, which created many limitations for potential homebuyers. But 22% of homeowners said they will certainly consider selling their home in 2013, paving the way for a more broad inventory moving forward. Specifically, homeowners who bought their homes between 2010 and 2012 may consider selling as their home value most likely increased since the time of purchase, allowing them to sell at a profit.
“2013 could be the year that inventory turns around, just as 2012 was the year that prices started recovering,” said Kolko. “Homebuyers need inventory to choose from, and with fewer foreclosures on the market, new inventory will come from new construction or homeowners wanting to sell. Rising prices will bring out more sellers, especially if price increases lift them back above water.”
Click on the image below to see consumer expectations for 2013.