IRVINE, Calif. – Prudential Real Estate, an HSF Affiliates LLC company, today released results of its second quarter Consumer Outlook Survey indicating that millennials are increasingly optimistic about residential real estate. A full 80% of respondents ages 25-34 said their perception of the housing market is “favorable” or “somewhat favorable,” representing a 9 percentage point increase from the Q1 study.
Among all respondents, the national survey also found that confidence in real estate and home values jumped sharply, reaching 84% vs. 77% in Q1 study and 73% at year-end. Confidence is highest in both South and West regions at 84%.
On securing a mortgage loan, consumer sentiment continues reflecting the challenges people face through strict underwriting guidelines and credit-score requirements:
– 57% of respondents said securing a mortgage is more difficult than it ever was prior to the market crisis.
Nearly 40% said lenders are “overly cautious” when it comes to mortgage financing.
– Anxiety and fear of losing a real estate opportunity are respondents’ main emotional challenges in seeking home financing.
– With interest rates rising recently, 71% said they are encouraged to buy a home now rather than later. It is worth noting that 78% of respondents indicated that home ownership is valuable regardless of shifting rates.
While 65% of respondents said they watch interest rates closely, there is confusion about recent rate trends. Among those who claim to watch rates closely, 43% believe that interest rates are holding steady or falling, though rates have risen so far this summer.
The knowledge gap calls for advice and guidance from real estate professionals to help people make the best choices. Of survey respondents, 63% indicated that a good agent can help them make the right choices about the type of home and community they want. And having a trusted source of information and guidance is important to 64%.
“Our survey shows that Americans who are looking to find and purchase a home remain positive about their prospects, and they’re looking to the guidance of quality real estate agents to navigate the entire process,” said Stephen Phillips, chief operating officer for HSF Affiliates, LLC. “Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.”
Consumer Outlook Survey tools and resources are available on PREA Center starting this afternoon, including the network’s original press release, a press release template, slide presentation, talking points and infographic.