The Majority of Americans Are Still Prioritizing Homeownership Despite Market Challenges
ldeakins
Wed, 01/25/2023 – 10:47
Millions of Americans are looking to become homeowners in the year ahead, but as mortgage rates continue to climb while home prices remain elevated, not all prospective buyers will be successful
Despite fears of an economic recession coupled with a turbulent seller’s market, 83% of Americans are still prioritizing homeownership, according to a recent study by NerdWallet. Roughly 28 million Americans say they plan to purchase a home within the next 12 months, but not all will be successful.
Prospective buyers looking to become homeowners in the next year expect to spend an average of $269,200, well below the typical home price of $379,100 recorded in October 2022, NerdWallet reports.
Many Americans blame the economy and mortgage rates for feeling worse about 2023 homebuying prospects. About one-third (32%) of Americans feel worse about their ability to purchase a home in 2023 than in 2022, regardless of whether buying a home is in their plans. This is up from 25% when we asked last year. The top reasons for feeling worse include a worsening economy (58%) and higher mortgage rates (57%).
Most expect a housing market crash. Two-thirds (67%) of Americans say a housing market crash is imminent in the next three years.
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