Consumer sentiment concerning the housing market can provide insight into what prospective clients are thinking. A lack of willingness to participate in the market can impact your success. If you understand consumer sentiment you can come up with a marketing plan that helps ease their pain points. As well, consumer sentiments might not be based on the same things you rely on such as market stats.
According to the National Association of Home Builders (NAHB) only 20% of house hunters expect an easier house hunt in the near future. In fact, even less plan to buy a house within a year.
With this in mind, here are five ways consumers see the housing market right now, based on the NAHB’s prospective home buyers survey.
1 – Consumers have low expectations
As already mentioned, consumers are not feeling overly excited about their prospects in the near future. About 67% actually expect their search to get harder or at least remain unchanged in the months ahead. Although this might sound less than optimistic for future purchases, it could also provide an opportunity to help clients see the outcome won’t improve. Now’s as good a time as ever to make a purchase.
2 – Limited supply
Homebuyers feel the inventory has remained tight. About 59% of house hunters said they are seeing the same or even fewer homes on the market. Although 27% said there were more houses available in the second quarter, compared to 4Q17 two years ago 38% saw better options.
3 – Fewer prospects
You might find fewer prospects with only a mere 12% planning to make a house purchase in the next year. This is half the number that planned to buy at the end of 2017. If you look at prospects by age, 17% are millennials, 13% are Generation Xers, 7% are baby boomers and 3% are seniors.
4 – Targeting existing homes
Prospective buyers have their sights set on existing homes over new builds. This is probably because of higher home values for new properties and elevated housing prices. The numbers showed 41% of buyers searching for an existing home and 40% willing to consider a new or existing home. As well, only 19% were strictly looking for a new home. Baby boomers most commonly wanted an existing home, while new homes were more desirable for millennials. There is also growing interest in multi-dwelling options.
5 – Limited affordable options
Consumers found that their options were limited especially when price was considered. About 80% said that more than half the houses on the market in the second quarter were out of their budget. Only 20% of house hunters were able to consider half (or more) of the inventory on the market.
Understanding what is keeping prospects from entering the market might make it easier for you to present reasons they can find something worthwhile. Your ads can address these concerns, helping buyers see that opportunities still do exist.
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