The 2023 ServiceLink State of Homebuying Report highlights
generational preferences and trends from today's homebuyers
PITTSBURGH, May 9, 2023
/PRNewswire/ -- Higher home prices and low inventory isn't
deterring the youngest generations from seeking homeownership. A
new survey report from ServiceLink, part of the FNF family of
companies and the nation's premier provider of tech-enabled
mortgage services, analyzes generational trends among recent
homebuyers, their sentiment about today's housing market and the
role technology plays throughout the process.
The 2023 ServiceLink State of Homebuying Report (SOHBR)
features insights from 1,000 homeowners who either purchased a
home, or tried to purchase a home, within the past three years.This
comprehensive report examines year-over-year (YoY) trends,
generational preferences and other factors that shape the behavior
of today's homeowners and prospective buyers.
"Even with the ups and downs in today's housing market, there is
still a strong desire among several generations to obtain
homeownership," said Dave Steinmetz,
president of origination services, ServiceLink. "Our latest study
suggests there are many homeowners and homebuyers who are ready to
make their mark in the real estate market this year; whether it's
to purchase a new home or take out a home equity loan. This
indicates there is an opportunity for lenders to provide more
education and resources to buyers and homeowners to guide them
throughout their homeownership journey."
Key consumer survey findings include:
Seeking homeownership: More than half of respondents say they
are open to purchasing a home
- Despite shifting market conditions, more than half (52%) of all
respondents said they plan to consider buying a home
- Of those respondents, 61% of millennials say they plan to
consider buying a home (as compared to 25% of Gen X, 12% of Gen Z
and 2% of baby boomers)
Tapping into equity: Homeowners, especially millennials, plan
to take advantage of the increasing value of their home
- 21% of surveyed homeowners reported having over $100,000 worth of equity in their home, followed
by a combined 41% who said they have between $50,000 and $99,999
in tappable equity
- 44% of homeowner respondents plan to take out a home equity
loan this year (as compared to 11% who said they don't know enough
about home equity loans to consider them)
- Of those homeowners, 49% of millennials say they are likely to
take out a home equity loan (as compared to 44% of Gen X, 41% of
Gen Z and 12% of baby boomers)
- 73% plan to use the money to make home improvements, while 20%
plan to use the money to pay off debt, including student loans
Lingering buyer fatigue: Complicated market conditions are
leading some homebuyers to abandon the homebuying process
- Almost half (49%) of respondents considered buying a new home
in the past 12 months, but ultimately decided against it (compared
to 24% in the 2022 SOHBR)
- Of those who considered buying but decided against it,
millennials led all generations at 58% (as compared to 24% of Gen
X, 13% of Gen Z and 4% of baby boomers)
- Over half of these respondents (56%) said options were too
expensive (as compared to 44% in the 2022 SOHBR)
- Additionally, 48% of this group said high mortgage rates were a
main factor for hitting pause on the home search (as compared to
29% in the 2022 SOHBR, who said their financial situation changed
and 28% who cited low housing inventory)
Auction is becoming more mainstream: Homebuyers are
considering alternative paths to homeownership
- 40% of respondents would consider buying a home at auction, but
haven't done so yet (as compared to 33% of respondents in the 2022
SOHBR)
- Of those who said they would consider buying a home at auction,
but haven't done so yet, Gen X ranked the highest among all
demographics at 46% (compared to that of millennials (39%), Gen Z
(39%) and baby boomers (30%))
- The potential use for a home purchased at auction: primary
residence (50%), rental income (23%) and fix and flip (20%)
Streamlining the process: More homebuyers want to leverage
technology to improve the homebuying experience
- Convenience/ease of use (63%) and time savings (59%) prove to
be the biggest benefits of using technology in the homebuying
process, across age and gender. This is similar to the results of
the 2022 SOHBR where 72% cited convenience/ease of use and 60%
cited time savings
- Even though 41% of baby boomers said technology did not play a
role in their mortgage process, 77% of baby boomers said
convenience/ease of use was the top benefit of using tech (compared
to 65% of millennials, 65% Gen X and 42% of Gen Z)
- A combined 68% of respondents said they are 'very willing' or
'willing' to submit videos or photos of their home for a virtual
inspection (compared to a combined 13% who said they are 'not very
willing' or 'not willing at all')
Read the full report here.
Methodology
The 2023 ServiceLink State of Homebuying Report survey was
completed online among a panel of potential respondents who
purchased a home, or tried to purchase a home, in the past three
years. A total of 1,000 respondents, 18 years of age and older,
completed the survey. Interviewing was conducted by Sago from
January 7, 2023 to January 13, 2023.
About ServiceLink
ServiceLink is the nation's premier provider of digital mortgage
services to the mortgage and finance industries. ServiceLink leads
the way by delivering best-in-class technologies, a full product
suite of services and proven experience, built on a foundation of
quality, compliance and service excellence. ServiceLink provides
valuation, title and closing, and flood services to mortgage
originators; and default valuation, integrated default title
services, vendor invoicing and claims audit services, as well as
field services and auction services to mortgage servicers.
ServiceLink helps clients in the lending industry and beyond
achieve their strategic goals, realize greater efficiencies, and
better serve their customers. For more information about
ServiceLink, please visit svclnk.com.
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SOURCE ServiceLink