Prudential Real Estate Outlook Survey Q1 2013
Consumer Confidence in Real Estate, Home Prices Reaches Year-Long High
Prudential Real Estate, an HSF Affiliates LLC company, today released results of its first quarter Consumer Outlook Survey showing that Americans’ sentiment toward real estate is growing increasingly favorable. A full 77% of consumers feel that the real estate market and property values will recover, representing a four-point improvement from year-end results and seven-point jump over the same period a year ago.
According to the national survey, home ownership remains important to 96% of Americans, especially among women and Generations X and Y. Prospective buyers also said they are motivated by historically low interest rates and attractive home prices in many markets. In fact, 87% of respondents said Americans should buy homes while mortgage rates and prices are low.
“Our survey data shows that people are increasing optimistic about the housing market and buyers and sellers are looking to capitalize on low interest rates and pricing opportunities,” said Andrew Ratner, Vice President of Prudential Gallo, REALTORS. “Owning a home is still a major part of the American Dream and we believe more consumers are ready to enter the marketplace.”
More optimism in the housing market adds an additional dimension to the spring buying season. Beyond other factors, 80% of prospective buyers are looking for a good value this spring and are open to exploring neighborhoods they hadn’t previously considered to achieve that objective.
The majority of buyers who feel it will be easier to acquire a home this spring feel that way because the market has improved and “homeowners want to sell.”
Prospective home-sellers indicated that “finding the right house to buy first” and “making a profit” were the primary reasons they would list their homes this spring.
Additional key observations include:
87% of sellers are committed to seeing a sale through if their home doesn’t sell quickly, and 67% are open to additional guidance from their broker/agent on how to better market their home. 62% are willing to make repairs or redecorate in order to attract more interest.
Among all age groups surveyed, Generations X and Y remain most confident that real estate and property values will recover.
Confidence among “contemplators” – those who considered buying or selling a home within the past year but didn’t – jumped a full 12 points from Q2 2012 figures.
Contemplators’ net favorability of the real estate market increased 10 percentage points over Q2 2012 figures. Primary reasons why contemplators haven’t made a move include “waiting for the right opportunity” and “haven’t found the home I want yet.”
78% of women said homeownership was “very important” vs. 70% of men.
“Anticipation seems to be building for both buyers and sellers this spring buying season,” said Earl Lee, chief executive officer of HSF Affiliates LLC and president of Prudential Real Estate. “Consumers are aware that the market is moving and, with growing optimism, more are weighing their homeownership options.”
The full survey details are available upon request. An infographic illustrating survey findings is available in the attached file.
Prudential Real Estate Outlook Survey Methodology
Interviews with 2,500 Americans who are “in the market” to buy or sell a home were conducted online by Edelman Berland in February, 2013. Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is ± 2.0% for all respondents.
About Prudential Real Estate and HSF Affiliates LLC
Prudential Real Estate is a part of the HSF Affiliates LLC real estate brokerage family, which includes Real Living Real Estate and the new Berkshire Hathaway HomeServices brand available later in 2013. Prudential Real Estate franchisees are independently owned and operated. HSF Affiliates LLC, based in Irvine, Calif., is a joint venture of HomeServices of America and Brookfield Asset Management. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities and are used under license with no other affiliation with Prudential.