Uncertainty among homeowners and buyers is at a three-year high, according to Bank of America’s (BAC) Homebuyer Insights Report published Wednesday.
Of the survey’s 2,000 respondents nationwide, 60% said they are unsure whether now is a good time to buy, compared to 48% in 2023.
Despite this, about half of the prospective homebuyers surveyed feel optimistic about the market, saying it’s improved over the past year. Respondents expect this to continue: 75% foresee home prices and interest rates falling, and are waiting until then to buy a new home. That’s up from 62% in 2023.
Among all prospective homebuyers surveyed, 15% reported taking a loan from family members in order to afford their down payment, up from 9% in 2023.
The research also found that Gen Zers and millennials are still motivated by homeownership, even though financial obstacles require them to make sacrifices to reach that milestone. For instance, 30% of Gen Z homeowners reported having to take an extra job in order to afford their down payment, up from 24% in 2023. About a fifth of Gen Z homeowners purchased their home with siblings, compared to just 4% in 2023.
The impacts of climate change are also weighing on the minds of homeowners and buyers. Two-thirds of those surveyed said that severe weather and natural disasters were a major concern. For current homeowners, nearly a quarter have personally experienced property damage or loss in the last five years due to severe weather events, the report found.
Lastly, the survey may also offer insights into the future health of real estate brokerages. Of Gen Z prospective homebuyers, 40% believe that artificial intelligence will be the “most valuable resource” in helping them buy a home in five years time.
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