Amid the development of increasingly favorable housing conditions, including steady mortgage records, appreciating property values and declining inventory levels, more consumers may be pursuing homeownership.
The Real Estate Regrets survey recently released by the online real estate marketplace Trulia showed the majority of Americans believe now is a good time to buy a home. When asked if it would make more sense to purchase a home today, or this time next year, three-quarters of respondents reported that they believe now is a better time. However, although conditions are advantageous to both buyers and sellers, just 32 percent of those surveyed said it would be better to sell a house now, as opposed to April 2014.
Trulia's chief economist, Jed Kolko, outlined the regrets consumers noted as a part of the study. While the majority of respondents who rent said they wish they had bought instead of rented, both renters and homeowners lamented they regret not choosing a larger property.
"Faced with limited inventory, many buyers will feel pressure to act fast – but snap decisions often end in regrets," Kolko said. "Homeowners' biggest regrets are wishing they bought a bigger home and wishing they remodeled more. Many buyers would have fewer regrets if they waited until they were in strong enough financial shape to afford a house that really meets their needs. Many current renters wish they had bought, but very few current homeowners wish they had rented. Furthermore, homeowners are three times more likely to wish they had purchased a larger home than a smaller home. Even after the housing crisis, Americans' main housing regrets are that they didn't invest more in their homes."
Young consumers show less enthusiasm toward purchasing
Possibly due to the large amounts of debt college graduates enter the working world with today, an increasing number of young adults may be becoming less interested in owning property, even if they will regret it in the future.
Using data compiled by the Federal Reserve Bank of New York, Bloomberg News recently reported outstanding educational debt is currently at a level of $966 billion, and the number of 25-year-olds with student debt has risen 18 percent in the last decade. Additionally, fewer young people may have a sense of financial safety and soundness, as the average student-loan balance among 25-year-olds with debt increased by 91 percent in the last 10 years, from $10,649 to $20,326.
While many may still be apprehensive of their abilities to own property, online real estate information provider Courthouse Retrieval System Data can help them better understand their financial standing, as the organization continuously updates its website with up-to-date records and comparables.