Welcome Home says income affects length of home search

It took less than a month to find a home for nearly a quarter of new Pennsylvania homebuyers, according to PAR’s Welcome Home survey. I think most of our markets are continuing to see low inventory, which is forcing buyers to make quick decisions. And many Realtors® I’ve spoken to say they’re telling their clients to be prepared. If they want to be competitive in today’s market, buyers should be pre-approved for a mortgage so they’re ready to make an offer as soon as they find a house that meets their needs.

The survey showed that buyers over the age of 50 were even more likely to find a home in less than a month from starting a home search to closing on their new home. Thirty percent said it took less than 30 days to complete their home purchase, compared to just 16 percent of homebuyers under the age of 50.

I thought it was interesting that income levels appear to have an impact on the length of a home search. The survey showed that 31 percent of buyers with incomes between $75,000 to $150,000 spent more than six months in their home search, while only 23 percent reported the same in the first quarter. It may be there are a lack of homes in the price range these homebuyers are looking for, which may be adding to the length of their search.

While location remains the top reason for a new home purchase, with 37 percent saying that was the main reason for choosing their new home, 16 percent of new homebuyers picked interior features as their main reason.

We found this time that more new homebuyers with children indicated that a larger plot or more acreage was the reason they selected their home. Just 4 percent of those buyers indicated that an affordable price was their main reason for purchasing their home, compared with 10 percent previously. It looks like many homebuyers are willing to pay a little more if they find a house with the features they value.

Over the past three years, use of home search websites has remained fairly consistent. Zillow.com continues to be the preferred home search site of choice, with 19 percent of new homebuyers in the second quarter and 20 percent on average using the website. Realtor.com follows in second place. Most surprising is that more than 45 percent of homebuyers don’t use any online search sites.

To learn more about the recent Welcome Home survey, visit WelcomeHomePA.org.