What homebuyers are waiting for

Most homeowners are content with their purchase.

In a recent Bank of America survey, 95 percent of current homeowners reported that they feel proud of owning their home.

And it looks like there may be more happy owners in the future soon. Twenty-five percent of prospective buyers said they plan to purchase in the next two years. The majority (61 percent) are delaying purchasing to pay off bills and debts, while 47 percent are striving to improve their credit score. Forty-five percent are saving for a new home, while 39 percent are saving for retirement. Nearly one-third are still paying off student loans, while 28 percent are saving for their child’s education. However, 35 percent of buyers have started saving for a down payment, and 75 percent said their savings will pay for their down payment. Yet, most aspiring buyers are not sure how much they have to put down for a down payment. Thirty-one percent said 10 percent, while 29 percent said 20 percent, and 15 percent said more than 20 percent.

So, what leads prospective homebuyers to become homebuyers? According to the majority (52 percent), it’s having the financial means. Forty percent are ready to have their own place, while 35 percent want a reliable job with steady income.

For those who do already own, across all generations, 36 percent believe their current home is a stepping stone to their dream home. To 68 percent of millennials, that’s their plan.

About one-third of owners said that their home’s value is determined by how much they spent to purchase it. Ninety-one percent reported that they treasure the memories made there.

Homeownership has a positive impact on their long-term financial picture, according to 79 percent of millennials surveyed. For first-time buyers across generations, 72 percent believe that is true. Eighty-six percent of millennials believe buying a home is more affordable than renting, compared to 54 percent of first-time homebuyers of all generations.