Confidence in Real Estate Market Rises; Interest Rate Concerns Remain in Berkshire Hathaway HomeServices’ Latest Homeowner Sentiment Survey
This report was recently released by Berkshire Hathaway HomeServices. While the information is focused on National results and not the Vail Valley specifically, it is still important to watch and noteworthy in our lives. We had a strong 1st quarter and are hoping the momentum continues as we move into the summer selling season. Optimism toward the U.S. economy and real estate market rose across all generations of current and prospective homeowners in Berkshire Hathaway HomeServices’ latest Homeowner Sentiment Survey released today by Berkshire Hathaway HomeServices Colorado Properties. However, rising interest rates continue to be a concern among prospective homeowners – Millennials in particular – who reported a sense of urgency to buy before mortgage rates rise further.
Overall, 62% of prospective homeowners and 61% of current homeowners said they are satisfied with the U.S. economy, with respondents from both groups overwhelmingly reporting that the general economic outlook is a critical factor impacting their real estate decisions. When looking at views toward the real estate market, 68% of prospective homeowners and 70% of current homeowners hold a favorable view, an increase of 5 percentage points and 4 points, respectively, from the last wave of the survey. Nearly half of current homeowners cited lower interest rates as the top reason for their favorability toward the market; 43% of this group also pointed to the increased value of real estate as a factor driving favorability.
Respondents are also encouraged by accelerating home construction, with three out of four citing a rise in available homes created by new construction as a factor contributing to market momentum. Additionally, 75% of current and 83% prospective homeowners cited increased construction in urban centers, offering homeownership options close to places of employment, as a top factor.
“Optimism in the real estate market and economy are at levels we have not seen since we first began fielding this survey in 2015,” said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “Mortgage rates remain near historic lows even with recent upticks, and we’re seeing rising wages, job growth and construction rates, which continue to make homeownership a compelling and realistic investment for many Americans.”