Affordability tops homebuyers’ concerns

The affordability of the housing market is what concerns most homebuyers, according to a recent Redfin survey.

Of the 1,800 homebuyers surveyed, 28.1 percent said affordability was their biggest concern, an increase of 1.4 percent compared to 2015. Homebuyers are also concerned about competition (13 percent), as well as inventory (12.4 percent) on the housing market. However, both competition and inventory saw a decrease in concerned homebuyers compared to 2015. More than 10 percent of respondents said they had no concerns at all about the market, an increase of nearly 1 percent from 2015.

Among millennials, they are most concerned about affordability (32.5 percent) and competition (16 percent). However, only 8 percent said they believe home prices would increase 5 percent or more over the next six months. Two-thirds believe prices will increase 2 to 5 percent, or remain the same. Thirteen percent think prices will drop.

Excluding price and size, 43.1 percent of millennials said the quality, design and floor plan were the most important to them when choosing a home. One-third said the length and ease of a commute is vital, while 43.4 percent said the school quality is important to them. More than one-third said the yard and green space is what calls to them.

High rents are leading more people to becoming homeowners. Of first-time homebuyers, 45.4 percent said rent is too high, compared to only 23.4 percent who said a life event, like a marriage or child, would lead them to buy a home. Among all homebuyers, 22 percent said rent was too high, while 26.3 percent cited a life event.

The survey found that nearly 30 percent of homebuyers are more inclined to buy now, an increase of more than 1 percent compared to last year.