Is business booming? A recent market survey of independent title agents and real estate professionals shows confidence in home sales rose sharply in Q2 2017 due mainly to increased demand for homes by Millennials coupled with favorable economic conditions.
- “Overall, confidence among title agents and real estate professionals in transaction volume growth in the coming year swelled this quarter, surging 9.1 percent. The increase was driven by the rise in expectations for both purchase transactions and refinance transactions amid persistent low mortgage rates,” said Mark Fleming in a press release. He is chief economist for First American Financial Corp (FAF), which conducts the quarterly Real Estate Sentiment Index survey.
- Survey shows Millennials are responsible for increased home sales.
- Those surveyed in Q2 indicated that the majority, or 87 percent, of first-time homebuyers are now Millennials. When asked to identify the primary motivator for first-time buyers, Fleming said the most cited reasons were:
- Buying for financial investment over renting, 41 percent
- Starting a family and having children, 23 percent
- Increased income or a new job, 23 percent
“The decision to get married was the least cited motivation,” Fleming said.
- The primary challenge for homebuyers is still the same.
- The main challenge for new homebuyers hasn’t changed much from that of past generations. It’s still saving up for the big down payment. “Title agents and real estate professionals most frequently cited saving for a down payment as the primary obstacle to those that decide to become a homeowner (38 percent). Overall affordability was the second most cited obstacle (31 percent), followed by the lack of inventory in the market (19 percent) and access to credit (12 percent). Perhaps surprisingly, current market conditions and credit terms ranked low as impediments to homeownership, according to the title agents and real estate professionals surveyed,” said Fleming in the release about the second quarter report on home sales.