This week, Trulia released the results of its Summer 2013 American Dream Survey. The latest findings reveal the impact today’s competitive real estate market has had on consumer sentiment toward homeownership and the desperate measures people are willing to use to buy a home.
According to the survey, prospective home buyers are feeling the pain of a booming real estate market. The top worry among Americans who plan to buy a home someday, if they were to buy a home in 2013, is that mortgage rates would rise further before they buy (41 percent), followed by rising home prices (37 percent). For consumers in the hottest markets – where asking home prices rose more than 15 percent year-over-year, such as Las Vegas and Oakland – buyers’ worries are even more intense for most of the concerns listed below.
Among Americans who would buy a home someday, 67 percent would use aggressive tactics to buy a home, including bidding above asking, paying the seller’s closing costs, writing personal letters, or removing contingencies, to name a few. The survey found that households earning more than $100,000 a year are more likely to offer to pay the seller’s closing costs or bid above asking, whereas lower-income households making less than $50,000 a year are more likely to borrow money from family or friends to put down 20 percent or make an all-cash offer. Young adults – many of whom are likely to be first-time home buyers – are especially aggressive in their house hunt, with 78 percent likely to do at least one of these tactics.
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