Consumer behavior drives every market, especially the homebuying industry, which is why Lending Tree surveyed over 2,000 people to gauge how the general population feels about the not-too-distant future of purchasing a home.
The Bubble Will Burst
The current real estate bubble has grown very big and very round, but 26% of those surveyed expect that bubble to burst in 2022. And 41% of Americans think the market will crash before 2021 ends, dropping real estate prices to more acceptable levels. However, 13% of people think things will continue as they are.
The American Dream is Alive
Owning a home is inherently American, and 80% of those surveyed still agree with that sentiment. However, those of Generation X and Baby Boomer were more optimistic than the younger generations.
Affordability Will Increase
Look almost anywhere in the country, and you’ll see home prices increase. However, 45% of those surveyed felt the new presidential administration will put policies in place to help more people own homes.
Over a third, 35%, of those surveyed felt that many people will leave metropolitan areas in search of more land, larger homes, and an increased work-from-home life. However, a recent LendingTree study reveals that people aren’t fleeing cities as quickly or frequently as perceived.
Mortgage Rates Will Rise or Fall
Even though mortgage rates have hit historic lows, falling below 3%, 24% of respondents think rates will drop even lower. However, 30% predict rates will increase by this time next year.
Climate Change Will Impact Home Values
Floods and fires dominated the few headlines that weren’t about COVID-19 or politics, and that lead to 23% of those surveyed to share that storms and floods were a concern.
In fact, over half, 55%, said they wouldn’t consider purchasing in a coastal region. But in opposition, 19% said they’d have no problem living in a high-risk area.
Only time will tell how many of these predictions will come true before the year ends. Regardless, it looks like homes will continue to move in this sellers’ market.