Are homebuyers experiencing more buying remorse?

Do you see homebuyers’ remorse with any of your clients?

According to a recent ValueInsured Modern Homebuyer Survey, 62 percent of all Americans report they believe that buyers who purchase a home now will have some regret or remorse about their buy within a year, thanks to spending too much. Homeowners are more likely to believe people who buy now will have regret, compared to non-homeowners. The report pointed out that in some areas, homeowners are spending nearly 50 percent of their income on housing costs.

Sixty-seven percent of homeowners and 62 percent of non-homeowners report that if they were to purchase a home now, they would be buying high, while 60 percent of homeowners and 55 percent of non-homeowners believe people who are purchasing in their neighborhoods are overpaying for their properties. Twenty-five percent of all respondents reported that those who buy today will feel the same level of regret as though who purchased prior to the 2008 housing crisis, the survey found.

According to a 2017 survey, the top reason buyers have regret after purchasing is the size of their home, most wish they had purchased a larger home. A quarter of buyers said they wish they had done more or less remodeling. Interestingly, 41 percent of renters wish they had bought instead of renting.

However, the ValueInsured survey found that ultimately, many Americans are optimistic about the future of the housing market. Most (71 percent of homeowners and 65 percent of non-owners) believe a housing correction will happen in the next 24 months.