As the country’s domestic market begins to rebuild after a period of low inventory, a new survey by ServiceLink, part of the FNF family of companies, has found that most potential buyers would turn to auctions as an option for home ownership.
The survey, conducted October 25-27 online by The Harris Poll on behalf of ServiceLink, asked more than 3,000 consumers, ages 18 and older, about where they think the housing market is going in 2022 and on their attitude towards buying a home. at auction.
Overall, the survey found that more than one in four U.S. consumers (28%) were unaware that a home could be bought at an auction. More than three in five U.S. consumers (62%) would consider buying a home at auction, with 10% of respondents saying they have.
Across different age groups, Millennials (25-40) were more open to buying at auction than their older counterparts, with 75% saying they would consider buying a home at auction, compared to 65% of those of Generation X (41-56 years old), and the number drops even lower to just 54% of baby boomers (57-75 years old).
âIt’s no surprise that millennials are looking for new opportunities to own homeownership, especially in today’s real estate market where they face challenges due to high prices and low supply,â said Myriam Moore, President of Default Services at ServiceLink. “We expect more auction properties to hit the market next year through foreclosure, and buying homes at auction will become more common as consumers look to buy quickly and cheaply. competitive. “
Among those interviewed:
- 21% of millennials bought a home at an auction
- 13% of Gen Z bought a home at an auction
- 6% of millennials bought a home at auction
- 4% of baby boomers bought a home at auction
When assessing buyer’s motivation, the listing price (70%) and the speed at which the sale was closed (57%) were the main motivators in the decision-making process when examining a house purchased at an auction.
Not being able to see the home in person before buying (66%) and not being able to get a professional inspection (62%) were factors that kept consumers from buying at an auction.
Forty-two percent of U.S. consumers say the ability to bid remotely (online) would encourage them to buy a home at an auction. For millennials, that jumps to 55%. Younger generations are showing openness to the use of remote auction tools, which can make auctions more accessible as there is no need to travel to participate.
According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), the market is experiencing 15-year highs, which are expected to continue until the end of 2021, but will subside until 2022.
âThe success of the housing industry will continue, but I don’t expect next year’s performance to surpass that of this year,â Yun said in a recent forecast.
Consumers surveyed by ServiceLink agree and expect the real estate market to remain strong and competitive for potential buyers in 2022.
Almost half of consumers (45%) surveyed expect home prices to rise in 2022, while 39% believe there will be an increase in foreclosed properties available for purchase during a sale auctioned in 2022.