HOME BUYING, WITHOUT CONSPICUOUS OVERSPENDING, Slowly Becoming The Norm!
TODAY'S BUYERS INVEST CAREFULLY, AND DON'T ASSUME A BIG, FAST RETURN ON THEIR INVESTMENT!
The tables have, indeed, turned!
It wasn't more than a couple of years ago that a young couple buying a home would stretch their finances to the limit. They would consider the largest home possible - even if the price exceeded their target budget - to maximize their potential home equity. Back then, you see, near double-digit annual appreciation seemed almost like a birthright!
Not so much anymore! The formerly-gluttonous attitude of buying the most you can is shifting.
In a survey by American Lives, a CA-based Market Research Firm, as reported by Mary Umberger in today's Chicago Tribune, researchers found that many buyers of new homes today seek more value for their home investment. They are looking for a good lifestyle fit, as opposed to every luxury option available, just so they can say they bought them.
Boyce Thompson, Editorial Director of Builder Magazine, who participated in the research, found new home buyers no longer expect automatic home appreciation. They fear, in fact, their initial investment might actually go down in value at the start. To that end, they limit their up-front home investment, and, in their opinion, their financial exposure.
Of course, those who completed the survey were already contemplating a home purchase, so the sample is far from a broad representation of the general public. However, more than six out of ten respondents were concerned about the security of their jobs as they plan their home purchase, and this concern often focuses their desire into less expensive, smaller homes.
Today, just buying the home itself is the main goal of young homeuyers, according to the American Lives survey. All the extra icing, far less important.
Buyers today feel the neighborhood and community in which the house is located is of equal importance to the luxury amenities of the home itself. They seem more willing to now accept a smaller, less-fancy home, if the community offers all of the amenities their family requires.
Young home buyers would also consider investing in items that make their homes more ecologically friendly, more green - but only to a point. Buyers surveyed would agree to increase their payment by up to $35 per month to cover certain green features. However, they would be less likely to pay for these features if the projected return on upgrading green were low, despite their likely positive impact on the planet.
The times, I suppose, are a-changing!
DEAN MOSS & DEAN'S TEAM CHICAGO
