“This year, many would-be homebuyers faced a worsening inventory situation, which meant more competition for fewer homes for sale and rising home prices,”
In a survey conducted in November 2017 polling 2,188 adults over 18 years old, Trulia examined how Americans were feeling about the housing market now to predict what may happen in the new year. For one, optimism about homebuying in 2018—due to both a turbulent political climate and a concern over natural disasters—is only at 25 percent. Another 25 percent believe the coming year will be worse, which McLaughlin says marks the first time in four years that the sentiment is neither overwhelmingly positive or negative. Only 10 percent of Americans surveyed said they planned to buy a home in the next year.
Conversely, Americans seem more enthusiastic about selling: 31 percent believe the upcoming year will be better for parting with their home, and only 14 percent think it will be worse. This 17-percentage point difference is the biggest it’s been since 2014.
“The shift is likely related to the same possible reasons that many Americans are thinking next year will be worse for homebuying,” explains McLaughlin. “Namely, that prices and political uncertainty may be enticing homeowners to cash in on their equity.”
Homebuying still doesn’t seem to be something particularly on the radar for millennials. The 18-34 demographic
According to McLaughlin, these findings are consistent with
“In 2016, we asked millennials what would make them take the leap from renting to homeownership and we found that saving money is continually a primary factor,” he says. “Perhaps as a result, most millennials who plan to buy a home one day don’t plan to do so after 2020.”
If they do, they should probably be looking at homes in West Virginia and Ohio, named the
In more positive news, while 2017 has come with its fair share of problems, thereby creating a climate that’s unstable in more ways than one, the American Dream is still very much wrapped up in owning a home: 73 percent of millennials said that homeownership is part of their personal American Dream—they just might have to wait a while.
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