BLOOMFIELD HILLS, Mich. – Aug. 2, 2013 – Current homeowners are optimistic about selling their home and might move up their timeline to purchase a new home, according to the most recent survey by national homebuilder PulteGroup Inc.
In the PulteGroup Home Index Survey (PGHI), 43 percent of move-up buyers indicated they’re planning to purchase a new home within the next five years; 76 percent believe they can sell their current home within two years for enough money to buy a new home.
“One of the most intriguing findings from this PGHI survey is the optimism and the willingness of homeowners to ‘pull the trigger’ on buying a new home, even if they may not have an immediate need to move,” says Deborah Wahl, senior vice president and chief marketing officer for PulteGroup, Inc.
More about return on investment than a new baby
While a change in life stage, such as the birth of a new baby or the need to downsize, remains a common trigger for purchasing a new home, the PGHI survey showed that financial and economic indicators are more likely to spur buyers to move up the timeline to purchase a new home.
Other factors that would make homeowners move up their timeline include:
• Selling a home at a higher price point (38 percent)
• Relocating for a job (24 percent)
• Job promotion or new job (17 percent)
• New baby and/or family members moving in (11 percent)
Millennials responding more than other age groups
According to Wahl, millennial buyers could further propel housing demand. Of the three largest consumer segments – millennials (ages 18-34), Gen X (ages 35-54) and baby boomers (55+) – millennials are taking action and responding to the housing and financial markets faster than other age groups.
According to the PGHI, 38 percent of millennials who already own a home are planning to purchase a new home within the next two years. This increases to 58 percent over the next five years.
Research conducted earlier this year found that millennial renters are ready to purchase their first home. More than half (54 percent) of millennial renters surveyed said their intention to buy a home has somewhat or significantly increased in the past year.
The PGHI survey was conducted online by Russell Research May 31-June 4, 2013. It has a 95 percent confidence level, +/- 4.3 percentage points. The survey polled adults who have owned a home for at least two years, have children under the age of 18 and an income of $50,000 or more.
© 2013 Florida Realtors®