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Home Regret Study

 

According to a new survey by fintech company NerdWallet, among the homeowners who had bought a home in the last five years, 67% are unhappy about their purchase.

A total of 2,063 people were polled across the US. Out of which, 450 had purchased a home in the last 5 years. The survey suggested that because of the low inventory and a bidding war for homes, is the key reason that contributed to the sense of regret.

Data from real estate brokerage Redfin found that, as of July 2021, homes have been on the market for only 18 days, then to the 41 days over the past 5 years.

The number of homes on the market peaked in September 2019, after that then it has fallen by a massive 55%.

Elizabeth Renter the data analyst at NerdWallet, told MPA that the findings showed even though the survey included data from 2017 because the current market is a strong seller’s market so it is forcing people to make sacrifices and to bend in ways which they otherwise wouldn’t.

The survey also found that 15% of recent buyers said that their home is too small, 10% said that they have to commute for a long time now, 15% felt that the mortgage payment was too high, 16% said that the total costs of homeownership were expensive and 13% homes had major need of repair.

Renter replied that due to the low inventory, the borrower’s wish list with the choice of location, size of the house, or the home budget, had very little choice of existing homes to choose from.

In light of some of the replies, Renter was asked if brokers should shoulder who in the heat of a deal may not consider possible downsides.

She said that the mortgage professionals and real estate agents should take greater responsibility and provide more practical advice to borrowers and them with realistic status.

Because buyers in their excitement might not pay attention to the intricacies, mortgage professionals should guide buyers about what the mortgage payment would be, and also point out how the mortgage payment would change if their insurance or taxes change, and they should remind borrowers of all of the additional costs of homeownership.

Renter pointed the difference between the housing market collapse from an average of 1.3 million between 2017 and 2019 and to below half a million between March and April 2021.

Reference Source: MPA

https://www.compareclosing.com/mortgagenews/home-regret-study/

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