Twenty-five percent of adults reported that they are very likely or somewhat likely to purchase a home this year, according to a recent survey by Bankrate.
Of all non-homeowners surveyed, 15 percent reported they are somewhat or very likely to purchase a home in 2017.
Specially, older millennials (aged 27-36) and Generation Xers (aged 37-52) are more likely to buy within the year. Nearly 40 percent of minorities, more than double the percentage of white adults, reported they are likely to buy a home this year.
“Among millennials, there’s a lot of pent-up demand for home buying,” said Holden Lewis, Bankrate.com’s senior mortgage analyst. “They have been stymied by stagnant wages, student loans and a lack of available starter homes. If enough affordable homes are put on the market, we might see a surge of first-time homebuyers in their early to mid-30s.”
Mortgages do cause hesitation in some would-be homebuyers. Thirty-seven percent of possible homebuyers reported that the size of the mortgage has a major impact on their savings for the future, while 46 percent reported it has a minor impact on their savings.
Parents also struggle more to save, according to the report. Two-thirds of non-homeowners with young children said they are unable to purchase a home due to lack of good credit or the inability to save for a down payment. Eighteen percent reported they don’t want to own a home.
“Having kids and raising a family is a primary reason why Americans take the leap into homeownership—many consider it a key component of the American dream,” added Lewis. “They’re caught between the costs of raising children and paying those mortgages and saving money.”
Realtor.com® Chief Economist Jonathan Smoke said that while most people believe they need 20 percent for a down payment, “in reality, it averaged 11 percent last year.”