Homeowner Sentiment Survey – Learn More

Homeowner Sentiment Survey for the end of 2015

Real estate consumers remain optimistic about housing and its long-term prospects yet are hesitant to list their homes in a market largely favoring sellers. Why?

Background:

• S. real estate has moved forward since the “Great Recession” though its recovery has been tempered by various market conditions.
  • Strict underwriting guidelines continue to stem the flow of consumers to real estate while homebuilders have not kept pace with growing demand and household formation.
  • Much of the glut of homes generated in the downturn – “Shadow Inventory” – was gobbled up by investors who now rent the properties.
• These factors and others have led to a low supply of homes, which in turn has intensified competition for existing properties and higher home prices in many markets.
• Consumers are clearly feeling the effects of the inventory shortage that currently exist, but they are not necessarily identifying the inventory shortage as the cause of these effects.

Survey Findings:

 71% of current and prospective homeowners believe the housing market is moving in the right direction, though that figure is down from Q1 survey findings.

• • Yet among contemplators – those who are considering selling their homes buy have not yet listed — 73% point to home prices that have not recovered to pre-recession levels.
  • And 61% of contemplators say uneasiness about the U.S. economy has kept them on the sidelines to this point.
  • 23% of current homeowners are considering selling their home but have yet to act
  • 74% of current homeowners believe that a challenge facing the market today are home values that are still lower than their pre-recession peak.
  • 57% of prospective homeowners agree that they feel that the housing market has not fully recovered from the recession.
  • 82% and 80% of prospective and current homeowners, respectively, agree that credit scores impacted by the recession that make it difficult to get a loan is the top challenge affecting the real estate market.
  • 76% of current homeowners believe that stricter lending requirements will make it more difficult to get a mortgage.
• Contemplators need more information about their markets, pricing and home conditions in order to feel confident in listing their homes.
• Respondents say credit-score impairment caused during the downturn, stringent lending guidelines and the competitive landscape for homes – in particular, first-time buyers inability to compete with all-cash, equity-flush and foreign buyers – as top concerns facing consumers today.
  • Among current homeowners, 68% said underwater mortgages conditions remain a hurdle.
  • Less than half of all respondents identified low inventory as a market challenge and only a small minority – 12% of prospective homeowners and 6% of current homeowners – described housing inventory as “decreasing.”
• Contemplators cite “Waiting for the right opportunity” and “Haven’t found my ideal home yet” among the most common barriers for not listing their homes.
• This is a classic case of supply and demand: The low inventory in many markets creates a strong opportunity for those contemplating selling their home.
• Opportunity exists for buyers as mortgage rates remain near historic lows. And, as more homes come on the market, balance will return to U.S. real estate.
• The stage is set for real estate professionals to connect with consumers, lean their needs and concerns and determine the best way for clients to capitalize.
  • 55% of contemplators said they’d be more likely to list if they had more information on the home-selling process.
  • 29% of contemplators would like to be more knowledgeable about setting the correct list price for their home
  • 32% of contemplators would like to be more knowledgeable about preparing my home for the sale.