New data reveals property and financing
options prospective homebuyers are willing to consider.
DENVER, Jan. 23,
2024 /PRNewswire/ -- From purchasing multi-family
properties to co-owning with friends and family, prospective buyers
are willing to get creative to become homeowners in the next 12
months, new data reveals. In a consumer survey, released today,
RE/MAX, the #1 name in real estate1, showcases
Americans' plans for achieving homeownership in 2024.
The housing market has experienced a few years of record-high
demand and historically low interest rates. As market conditions
continue to evolve, many buyers have been forced to consider other
options. The survey found that nearly 80% of prospective homebuyers
are considering adjusting their homebuying plans.
"Affordability remains a key concern for homebuyers as home
prices, interest rates, and inventory continue to fluctuate,"
shared Nick Bailey, President and
CEO of RE/MAX, LLC. "Despite today's economic environment, it's
clear that homeownership is still a priority for many, and the
results of our survey prove that buyers are willing to go outside
their comfort zone to reach their goal."
Key survey findings include:
Current Market Conditions Continue to Impact Buyers
Fluctuating market conditions and the uncertain rate environment
continue to impact homebuyers' plans. Many are considering creative
ways to break into the housing market.
- Forty-three percent of respondents have considered both other
property types (fixer-upper, foreclosure, or tiny home) and
financing options (borrowing from friends and family, purchasing
with a down payment of less than 20%, or paying with all
cash).
- Fifty-six percent of respondents said they would consider
purchasing a fixer-upper in need of remodeling, either for cosmetic
or structural reasons.
- Thirty-four percent of respondents would consider purchasing
with a down payment of less than 20%.
- Of note, more than nine in 10 respondents were somewhat or very
likely to discuss their alternative options with a real estate
agent.
Affordability Is the Main Priority
Affordability remains top-of-mind, and homebuyers are willing to
explore other property types and financing options to achieve
it.
- Seventy-three percent of those who indicated they would
consider purchasing a fixer-upper wanted the chance to purchase a
home at a lower listing price.
- More than a quarter of consumers indicated they would consider
purchasing a multi-family home, defined as a property occupied by
the owner and additional non-owner tenants. Half of them would do
so to split the cost of monthly mortgage payments.
- Thirteen percent of prospective homebuyers reported they'd be
willing to consider a super commute, buying a home 2+ hours from
where they work, for more affordability.
- Of the 34% of prospective homebuyers considering borrowing with
a down payment of less than 20%:
- More than 75% would do so because it's what they can
comfortably afford.
- Half would expect to make a down payment of 10% or less.
- Fifty-seven percent of respondents who indicated they would
purchase a condo, attached home, or townhouse would do so to
achieve lower maintenance costs.
- Respondents also want to make a home uniquely theirs. Of those
who reported they would consider purchasing a fixer-upper, nearly
70% would do so to allow them to start with a clean slate.
- Twenty-eight percent of these respondents are willing to pay
$30,000-$50,000 for repairs and renovations, with only
10% saying they'd spend upwards of $90,000.
- A majority said they're willing to spend less than $70,000, with 23% saying $50,000-$70,000 is
their limit, and 25% indicating their sweet spot is $10,000-$30,000.
Buyers Are Turning to Friends & Family for Help
Buyers aren't shying away from asking for help on the path to
homeownership.
- 27.7% of respondents would consider purchasing a home with a
friend or family member.
- Seventeen percent of prospective homebuyers are willing to ask
for help from friends and family when purchasing a home (funds for
down payments, co-signing loans, etc.).
To review additional results from the survey, please visit
remax.news.com.
Methodology: Data is based on a survey
conducted in partnership with Pollfish and fielded October 16, 2023 among 1,000 men and women in the
U.S. between the ages 18-54+, who plan to purchase a home in the
next 12 months.
About the RE/MAX Network
As one of the leading global
real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX
Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000
offices and a presence in more than 110 countries and territories.
Nobody in the world sells more real estate than RE/MAX, as measured
by residential transaction sides. RE/MAX was founded in 1973 by
Dave and Gail Liniger, with an
innovative, entrepreneurial culture affording its agents and
franchisees the flexibility to operate their businesses with great
independence. RE/MAX agents have lived, worked and served in their
local communities for decades, raising millions of dollars every
year for Children's Miracle Network Hospitals® and other charities.
To learn more about RE/MAX, to search home listings or find an
agent in your community, please visit www.remax.com. For the latest
news about RE/MAX, please visit news.remax.com.
1Source: MMR Strategy Group study of unaided
awareness.
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SOURCE RE/MAX, LLC