Home-buying isn’t what it used to be – in more ways than one.
With demand outweighing supply throughout the pandemic, thanks to record low interest rates, prices rose and competition only got hotter. As rates are now higher and the market wanes (only a bit), what is the state of the housing market right now? CivicScience has the latest insights below.
Many in the market.
Sixteen percent of respondents (n=1,795, excluding ‘none of the above’) are in the market for a home. Eight percent purchased a home over the past 3 years.
While people who earn under $50k annually are the most likely to be a newer homeowner or on the hunt to buy a home, people of all income brackets make up newer pandemic-homeowners within the last three years (with those earning $100k-$150k being a close second).
Buying a new home recently doesn’t mean everything is sunshine and roses. According to the data, for many it’s the opposite. Newer homeowners are the most likely to say they are worse off financially compared to before the pandemic. This further highlights the growing divide of the number of U.S. adults reporting they haven’t fared well financially.
Home warranties over home inspections.
With competition being strong, among those who recently purchased or plan to buy a home, many have forgone or plan to forgo a home inspection (40%). At the same time, close to 1 in 3 homebuyers got or plan to get a home warranty.
There’s a distinctive correlation when comparing the two groups. Homebuyers who did not / do not plan to do a home inspection are more likely to have bought or plan to buy a home warranty when purchasing their home.
Maybe rent instead?
Lastly, more people think it’s better to rent right now than to buy. As rising interest rates and continued inflation impact homebuyers, more people consider now to be a better time to rent a home in their area (33%) rather than buy one (22%).
Renting preferences vary greatly by both urbanicity and U.S. Census region. Urban dwellers in the South and Northeast are much more likely to say they consider now a better time to rent, but the same does not hold true for urban dwellers in the West.
As the housing market evolves, CivicScience will continue to study and report the latest on home-buying behaviors.