Consumer sentiment is following an unusual trend for a seller’s market: Home buyers are upbeat, but homeowners are less so, according to ValueInsured’s latest quarterly Modern Homebuyer Survey. Why the divergence between buyers and owners? Some homeowners may be feeling stuck, while buyers are anxious to jump into real estate before home prices and mortgage rates rise further.
Fifty-eight percent of homeowners surveyed say they want to sell but are holding off because they don’t want to purchase again at today’s higher prices. Fifty-nine percent of owners say they believe buyers in their area are overpaying for a home, according to the survey.
Buyers still have plenty of concerns, such as saving for a down payment and eroding housing affordability, particularly in the nation’s hottest housing markets.
But millennials say they are ready to make some sacrifices in order to afford their first home. They say they’d be willing to give up or cut down on eating out; take on a second job; give up most or all vacations; give up most or all clothes shopping; and return to or stay living at their parents’ home to save money.
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