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Rising Prices Pushing Buyers Out of Comfort Zone

According to the latest Modern Homebuyer Survey conducted by ValueInsured, the housing market is currently in a place where it is a good seller’s market due to low inventory but is less than ideal for buyers thanks to high prices. Data in the survey indicated that 79 percent of homeowners polled believe that it is currently a good time to sell a home while two-thirds are actually interested in selling “in the near future.”

While the majority consensus is that the market is ideal for sellers, there are a variety of reasons homeowners are not actually selling. In the survey, 72 percent of respondents were concerned with the timing of the real estate market, 63 percent were concerned with buying a new home after selling because of high prices, and 61 percent were waiting on lower home prices before they made a move.

The survey supports this evidence with a recent CoreLogic finding that 48 percent of the top 50 U.S. housing market were considered “overvalued.”

Additionally, survey respondents cited comfort zone as a reason they were unwilling to sell. Eighteen percent did not want to give up their current low mortgage payments while 26 percent are second guessing their desire to sell because associated expenses would weaken buying power for their next home.

According to the survey, this falls right in with a lower rate of housing confidence, which is down 1 percentage point from August to 67.7 percent, according to The ValueInsured Housing Confidence Index. In particular, the confidence rate for millennial homeowners was recorded at 77.7 percent: its lowest value since the survey began in spring 2016.

Homebuyers were also polled on what home buying trends they were most likely to regret. 58 percent answered with “no-inspection,” 57 percent with “offer sight unseen,” 54 percent with “co-buying from strangers,” 37 percent with “cashing out from retirement savings,” and 36 percent with the “tiny home” trend.

Finally, 57 percent of homeowners who were interested in selling believe that they will move within the next three years, while 35 percent of millennial homeowners said they were likely to change jobs in the near future and wanted to see where the move took them before selling to upgrade.

“Selling and buying are always fraught with any worry about timing the market, and life events don’t always cooperate. In any market, it’s wise to explore all your options for protecting your hard-earned equity,” said ValueInsured CEO Joe Melendez.

To read the full study, click here.

About Author: John Tee

John Tee is a writer and editor based in Dallas, Texas. A Texas native, he is a graduate of Texas A&M University and spent four years in West Texas working as a copy editor for the Midland Reporter-Telegram before relocating to the DFW Metroplex while also contributing to FanSided.com.
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