The number of Americans who are planning to buy a home within the next 5 years has increased to 54% according to a new report from BMO Harris Bank.
The lender’s Home Buying Report also reveals that 90% of first-time buyers are or intend to get a mortgage preapproval before beginning their home search while more than three-quarters of buyers set a budget before searching and stick to it!
Buyers are expecting to spend an average of $277,000 for their next home with an average downpayment of 32%.
"Future buyers are encouraged about their prospects for a home purchase in the near future, and they're keeping a healthy budget top of mind," said Steven Zandpour, Senior Vice-President and Head of Retail Banking for Chicago Metro North, BMO
Harris Bank.
When searching for their new home, 70% of respondents said they spent less than 6 months looking for their purchase while 10% were lucky enough to find a home without really looking, or in some cases without even intending to buy.
Around two thirds of buyers will consult a real estate broker to help find their next home while 61% will use online search portals and 38% will ask family and friends.
Millennials are more likely to use a mobile device for their home search, highlighting the importance for real estate agents to ensure that their listings are mobile-optimized.
