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Millennials are settling down, starting families and looking for more space — and they know that it won’t come cheap. A new Realtor.com® survey suggests shifting priorities among first-time homebuyers who are increasingly looking for flex space such as finished basements, guest rooms and guest houses. These home shoppers have also increased their budgets since the spring, and are more willing to bid over asking price and use other tactics to get ahead of the competition.
Realtor.com® and HarrisX surveyed first-time homebuyers in spring 2021 and again in fall 2021 to understand how their priorities have shifted in a competitive housing market. The survey found that while more than a quarter of hopeful first-time homebuyers were unsuccessful at purchasing a home in 2021, 72% are aiming to buy in 2022. And after months of trying, home shoppers have a better understanding of what it will take to write a winning offer.
“Despite a challenging year, aspiring first-time homebuyers are surprisingly optimistic about 2022,” said George Ratiu, manager of economic research, Realtor.com. “They’re looking at the new year as a fresh opportunity to make their dreams of owning a home come true and our survey suggests that they’re armed with information and ready to compete for their first home.”
First-time homebuyers know what it takes to win
Home sales are expected to hit their highest level in 16 years in 2022 according to the Realtor.com® 2022 Housing Market Forecast. In this fast-paced, competitive market there are a number of tactics that buyers can use to get ahead such as checking online listings every day, putting more than 20% down and making an offer quickly.
Expanding budgets to match the market
With the median home price in the U.S. hitting $380,000, many first-time homebuyers found that they needed to up their budget to land a home.
Staying closer to home
During the pandemic, many people moved from cities to suburbs to find more space and affordability. As we head into 2022, survey respondents are planning to stay closer to their current location.
“Our survey data suggests that many people have found the location they’d like to settle down in, and are now focused on landing the right home. And with more homes expected to hit the market in the coming months, there should be plenty of opportunity for prepared buyers to find their dream home,” said Ratiu.
Methodology:
The survey was conducted online from Sept. 23 – Oct. 1, 2021 among 2,583 adults by HarrisX (which includes an oversample achieving 502 respondents buying a house for the first time in the next year). The sampling margin of error of this poll is +/- 1.9 percentage points for all respondents, and 4.4 percentage points for first-time homebuyers. The results reflect a nationally representative sample of U.S. adults. Results were weighted for age by gender, region, race/ethnicity, income, and the status of those first-time homebuyers where necessary to align them with their actual proportions in the population.
|
What price range are you looking for in a home purchase? |
Spring 2021 |
Fall 2021 |
|
Less than $100,000 |
26% |
16% |
|
$100,000-$200,000 |
25% |
21% |
|
$200,001-350,0000 |
23% |
24% |
|
$350,001-$500,000 |
12% |
11% |
|
$500,001-$750,000 |
6% |
13% |
|
$750,001-$1,000,000 |
2% |
6% |
|
$1,000,001-$1,500,000 |
1% |
3% |
|
$1,500,001-$2,000,000 |
2% |
3% |
|
Over $2,000,000 |
2% |
2% |
|
How much over the asking price are you willing to pay to get a home that meets your needs? |
Spring 2021 |
Fall 2021 |
|
I’m not going to pay more than the asking price |
39% |
24% |
|
1-5% over listing price |
32% |
18% |
|
6-10% over listing price |
17% |
19% |
|
11-15% over listing price |
7% |
9% |
|
16-20% over listing price |
4% |
12% |
|
21-25% over listing price |
1% |
9% |
|
26-30% over listing price |
1% |
6% |
|
30%+ over listing price |
0% |
3% |
|
What are you doing or planning to do to get ahead of the competition? |
Spring 2021 |
Fall 2021 |
|
Check listings websites every day |
40% |
34% |
|
Make an offer within 48 hours of seeing a home |
n/a |
22% |
|
Set a price alert to get notified as homes hit the market |
24% |
20% |
|
Put more than 20% cash down payment |
22% |
25% |
|
Put down a larger earnest money deposit |
18% |
19% |
|
Offer all cash |
13% |
16% |
|
Offer above asking price |
13% |
19% |
|
Have my agent write letters to homeowners in neighborhoods I’m interested in |
11% |
14% |
|
Ask for no money for repairs after inspection |
12% |
13% |
|
Go over my budget |
n/a |
22% |
|
Forgo contingencies like inspections and appraisals to make the deal |
9% |
7% |
|
Compete in a bidding war |
n/a |
8% |
|
Make an offer on a home sight unseen |
n/a |
13% |
|
I don’t plan to use any tactics to get ahead of other buyers |
21% |
9% |
|
Where do you plan to relocate? |
Spring 2021 |
Fall 2021 |
|
Within my current city/town |
40% |
47% |
|
To a different city/town within the same state |
42% |
36% |
|
To a different state |
17% |
16% |
|
Outside of the U.S. |
1% |
1% |
|
Of the following, which features in a home are most important to you? |
Spring 2021 |
Fall 2021 |
|
Garage |
40% |
30% |
|
Updated kitchen |
37% |
30% |
|
Large backyard |
32% |
35% |
|
Quiet location |
35% |
26% |
|
Updated bathrooms |
26% |
22% |
|
Outdoor living area |
17% |
13% |
|
Open floor plan |
21% |
18% |
|
Space for pets |
24% |
18% |
|
Finished basement |
15% |
20% |
|
Guest room |
9% |
20% |
|
Not in flood zone |
17% |
14% |
|
Home office |
13% |
10% |
|
Large square footage |
14% |
15% |
|
Newly built |
8% |
11% |
|
Broadband internet availability |
18% |
12% |
|
Pool/spa |
7% |
12% |
|
Completely renovated |
10% |
10% |
|
Good public-school district |
17% |
16% |
|
Solar panels |
6% |
10% |
|
Walkability to neighborhood amenities |
15% |
12% |
|
Close proximity to family/friends |
11% |
9% |
|
Person/Man cave |
7% |
9% |
|
Not in fire-hazard zones |
7% |
10% |
|
Guest house |
4% |
7% |
|
Proximity to greenspace (parks, hiking trails, etc.) |
8% |
6% |
|
Short commute time |
12% |
8% |
|
Mother-in-law suite |
4% |
4% |
|
Small square footage |
2% |
2% |
|
Small backyard |
10% |
7% |
|
Other (specify) |
3% |
0% |
Media Contact
nicole.murphy@move.com
