Despite current home prices and interest rates, prospective homebuyers’ patience may be waning, with fewer willing to wait until prices or rates come down to purchase a home, according to recent data from the Bank of America Homebuyer Insights Report. About halfway through 2023, 85% reported that they were willing to wait for prices and/or rates to fall before buying a home; towards the end of last year, that percentage dropped to 62%. And prospective buyers were taking action: Sales of new single-family houses in September 2023 were a seasonally adjusted 759,000—up from 679,00 sales in April 2023
The research also explored what buyers would be willing to forgo in order to buy sooner, and what would motivate current homeowners to sell.
Half of current homeowners said they’d be prompted to sell if their dream home became available (50%) and/or if they found a more affordable area (54%)—even if it meant paying a higher interest rate for a new mortgage. Additional motivations for some, but not as many, to move and give up their lower current mortgage rate include:
- Job opportunity or job relocation – 40%
- Nicer neighborhood amenities – 40%
- The need for a larger home or more rooms – 38%
- A social community to be a part of – 32%
- A desire to be adventurous and move to a new area – 28%
- Moving to a home with rental potential – 21%
According to the report, millions of people are moving to areas where they can afford to buy a home. Those surveyed say the following could or already has motivated them to move from one state to another:
- Cost of living – 60%
- Career/job reasons – 44%
- Family and relationships – 37%
- Affordability of housing– 33%
- Safety concerns – 27%
- Retirement – 25%
- Adventure and exploration – 20%
Work-related reasons may also inspire homeowners to sell in today’s market, and work is a major driver of out-of-state moves. Those who have or would move to a new state for their careers are driven by increased job opportunities (57%), job requirements to relocate (29%) or the fact that they can work remotely and are no longer tied to an office (28%).
With inventory scarce, the Homebuyer Insights Report also explored how prospective buyers are adapting. The report found those surveyed would give up specific home features to increase their chances of finding a home in the year ahead. Across all generations, would-be buyers are most likely to give up the following if it increased the chances of finding a home to purchase:
- A brand-new home – 35%
- Being near family – 33%
- Public transportation access – 32%
- Historical charm – 31%
