Impulse buying big part of housing market, experts say
Homeowners are showing a desire to relocate even when they may not actually need to uproot from their current residence, according to a recent survey.
One third of homebuyers across the state that responded to a recent Welcome Home survey conducted for the Pennsylvania Association of Realtors® (PAR), indicated the decision to buy a home outweighed the need of having to look for one.
The survey, performed by Keystone Analytics®, revealed that 32 percent of homeowners decided to buy a home merely to relocate or they were tired of renting.
The remainder had unique reasons or family circumstances like marriage or new children that forced them to find a new home.
“Impulse buying is a big part of the (housing) market….[W]hen the opportunity presents itself people are taking advantage,” said Tom Simon, real estate broker and owner of Howard Hanna Real Estate Services in Belle Vernon.
Simon spoke from personal experience when he was in the process of building a house. “I had the lot, plans and was taking bids when one Sunday my wife and I were riding through the neighborhood and saw an (open) house so we stopped, looked at it and bought it that night,” he said.
The Welcome Home surveys are conducted on a quarterly basis and provide information on a number of consumer home buying trends.
In the survey, individuals ages 18-34 were the most likely to cite being tired of renting as their primary reason behind a home purchase. Interestingly, 11 percent of them indicated they purchased a second home or investment property.
An expanding family and needing more space also ranked high on the list.
“Owning a home helps build wealth, and national surveys show that younger buyers see a value in owning property,” said PAR President Todd Polinchock.
He said what is surprising is those ages 18-34 that purchased an investment property or a second home, which may be an emerging market for this part of the industry.
Paula Shaffer, president of the Fayette Board of REALTORS®, said she is also seeing a trend of people buying homes that aren’t necessarily in the market for one, especially older couples.
“We have a lot that come to open houses on Sundays,” said Shaffer. She added that a lot of the time couples realize they want to downsize or want something more practical although they were initially browsing.
When it comes to financing a home, the survey found cash purchases and 30-year mortgages remain the most popular.
Results show that 41 percent chose a 30-year mortgage to purchase a home while 21 percent reported buying their home with cash.
Polihchock said cash purchases are even more common with senior home buyers, accounting for 36 percent of those over age 65.
On the other hand, the survey reported that financing or closing issues continue to be the most stressful part of the home buying experience for most buyers along with the overall purchase process, especially for ages 18-34.
For 10 percent of home buyers, choosing the right home to pursue and buy was their most stressful part of the experience.