If you were to buy a home in the next six months, what type of house would you buy and where?
In the second installment of NAR Research’s new Housing Opportunities and Market Experience (HOME) survey released this morning, the response to that question yielded a resounding preference towards a single-family home in a suburban area.
Eighty-five percent of homeowners and 75 percent of renters said they would buy a single-family home, while only 15 percent of homeowners and 21 percent of renters said that would buy in an urban area.
According to Lawrence Yun, NAR chief economist, the preference towards a larger home in a suburban area underscores what he’s been saying for over two years: homebuilders need to more than double their focus on constructing single-family homes or else tight inventory and affordability concerns will likely worsen.
Also in March’s HOME survey, fewer renters (62 percent versus 68 percent in December 2015) believe that now is a good time to buy a home. Renter confidence was lowest in the West, where accelerating prices and low supply are considerable barriers for would-be buyers.
Who does think it’s a good time to buy? Most homeowners (82 percent), and the reason appears to be obvious: the $4.4 trillion in housing equity accumulation in the past three years.
This wonderful infographic captures more of the highlights from this quarter’s HOME survey:
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.