Just over 28 percent of buyers said they were most worried that “prices are rising or are too high,” the largest percentage to cite this concern in more than a year. The gap between affordability and other concerns has widened, based on a Redfin survey of more than 1,800 homebuyers.
The second-most-cited top concern was “too much competition from other buyers,” at only 13 percent, followed by a lack of homes to choose from, at 12.4 percent. In previous surveys the second- and third-most cited concerns made up a far higher percentage of total responses. Last year it was 31.4 percent, while in May it was 33.5 percent.
Among millennials -- homebuyers 35 and younger -- affordability worries were even more acute, with 32.5 percent citing it as their top concern and 10.3 saying they might not have enough money for a down payment.
High Rent Driving Tenants to Become Owners
Nearly half of all first-time homebuyers, 45.4 percent, said they were most influenced to get into the housing market because of high rent. In comparison, a year ago 24.7 percent of first-time buyers said they were house hunting because of high rent.
Among all buyers surveyed, 22 percent said the cost of rent motivated them to get into the market, up substantially from last year’s 12.8 percent but down from 24.4 percent in May.
To read the full report, complete with charts, additional statistics and methodology, please visit: https://www.redfin.com/blog/2016/08/affordability-is-homebuyers-biggest-concern-particularly-among-millennials.html
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Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the customer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the most accurate home-value estimate online, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 83 major metro areas across the U.S. The company has closed more than $31 billion in home sales, and saved customers more than $335 million in fees, and counting.
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