Americans are still as confident in the U.S. housing market as has been recently reported, yet they are decidedly more cautious. The quarterly Modern Homebuyer Survey*, released by ValueInsured, revealed the Q1 index finished at 67.7 out of 100.
Sixty-three percent of Americans said they are hopeful that 2017 will be a better year for housing opportunities than in 2016. This is a slight dip from the 69% that felt the same optimism in January.
The survey was conducted following the most recent Federal Reserve interest rate increase. Despite assuaged confidence, Americans still have a strong desire to buy and still value owning a home in America. In fact:
- 76% of Americans said owning home is an important part of their American Dream.
- 77% of Americans believe buying a home is one of the best financial investments they can make.
- 79% believe buying a home is more financially favorable than renting.
- 79% of non-homeowners said they would like to purchase a home.
Guarded sentiment came mostly as a result of prospective first-time homebuyers and upgrading homeowners, who reported a sense of increasing risk when it comes to escalating home prices and rising interest rates. Sixty-one percent of interested homebuyers expressed the belief that six months ago was a better time to purchase a home and that six months from now, conditions for purchasing a home will be worsened. A full 65% of respondents commented that they expect more interest rate increases to come this year, with 61% adding that “the era of affordable mortgages is coming to an end.”
Millennial first-time homebuyers find themselves in a quandary over the same issues, with 54% stating that they lack the confidence that if they were to buy a home this year, the home would increase in value by next year. Forty-eight of all other respondents commented similarly.