First-time buyers save longer and buy bigger
NEW YORK April 19, 2016 As the peak home buying season begins, first-time homebuyers are prioritizing their long-term residential needs, according to the inauguralBank of America Homebuyer Insights Report.
Seventy-five percent of first-time buyers would prefer to bypass the starter home and purchase a place that will meet their future needs, even if that means waiting to save more, and 35 percent plan to retire there.
In reality, three-quarters of experienced buyers said they sacrificed something the last time they bought a home, including travel (46 percent) or a new car (37 percent), and 32 percent said they sacrificed some of the features they would have liked in their dream home.
Additionally, buyers who have a plan in place for purchasing a home are more willing to consider a starter home than "someday" buyers who know they want to buy a home in the future but don't have a plan for doing so (41 percent vs. 23 percent). Seventy-seven percent of "someday" buyers would prefer to wait and move into a nicer home in the future.
"Every day, we talk to clients who are motivated to purchase a home for many reasons, including the pride of ownership and desire to establish roots in a community," said D. Steve Boland, consumer lending executive for Bank of America. "Today's aspiring homebuyers want to be selective and believe they should wait until they can afford to buy a home they'll live in for years to come.
"They're also realistic about the need to save for a downpayment. In the end, we look holistically at our clients' life priorities so they can fully understand the personal ramifications of what is perhaps the most significant financial transaction they will ever make."
The Bank of America Homebuyer Insights Report explores the attitudes, behaviors and preferences of the modern homebuyer. Based on a national survey of more than 1,000 adults ages 18 and older who want to buy a home in the future, the report reveals what homebuyers want in a home, their catalysts for making the home purchase and the unique preferences of first-time and millennial buyers, defined as those between ages 18 and 34.