New York-area homebuyers prepare, live with Mom and Dad

While they prepare for their first home purchase, many prospective buyers in the New York metro area are living with mom and dad, according to the second annual Bank of America Homebuyer Insights Report. One-third of aspiring buyers currently live with their parents, more than any of the 10 markets surveyed. Despite this, when thinking ahead to their first home, having the financial means (53 percent) outweighs wanting a place to call their own (38 percent) as their top influence to purchase. Nearly one in five cite wanting to live in a new city or town, higher than any other market surveyed.

The report, a study exploring homebuying perceptions and behaviors among adult consumers, also found that amid rising rental rates across the country, 59 percent of New York-area homebuyers believe owning is more affordable than renting. In fact, current New York owners were most likely to have purchased their first home because they thought money spent on rent would be better invested toward a mortgage (47 percent).

New York-specific highlights from the report include:

Experienced New York buyers say value goes beyond dollars and cents

  • Current owners in New York (83 percent) overwhelmingly say homeownership has a positive impact on their long-term financial picture.
  • Beyond financial value, local owners also see clear emotional benefits of homeownership, as nearly all are proud of owning their home (93 percent) and treasure the memories they have made (90 percent).
  • Thirty-eight percent of experienced buyers in New York say a home’s value is determined by how much it cost to buy it, but they are increasingly investing in this asset. Eighty-three percent look for ways to make their home more valuable, and 62 percent spend a lot of free time working on their home.

Aspiring New York homeowners are planning ahead

  • In addition to juggling a variety of financial responsibilities, including paying off debts and bills (58 percent), improving credit scores (45 percent) and saving for retirement (41 percent), 40 percent of prospective buyers in New York say saving for a home is a major priority.
  • Nearly one in seven New Yorkers say they will buy their first home within the next two years, and 36 percent have started to plan for a down payment.
  • Local first-time buyers are open to support. Thirty-nine percent think they would qualify for a down payment assistance program, and 65 percent say they would take advantage of these programs.

New York owners reflect on their homebuying experience

  • Experienced New York buyers bought their first home because they thought money spent on rent would be better invested toward a mortgage (47 percent), they wanted a place to call their own (44 percent) and had the financial means to purchase (41 percent).
  • When New York homeowners decided to buy, engaging a real estate professional (56 percent), setting a budget (48 percent) and going to open houses (41 percent) were the most common actions they took.
  • In looking back at their homebuying experience, New Yorkers’ advice includes: start saving for a home early (64 percent), consider the maintenance costs and unexpected expenses (47 percent), and create and stick to a budget (31 percent).

View the complete 2017 Homebuyer Insights Report here.

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