July 11th, 2023 7:00am PDT
(PenniesToSave) – According to a survey conducted by Clever Real Estate, in 2023, about 93% of homebuyers expressed regret after purchasing their homes. This is an increase from 72% in 2022.
According to Clever, overspending on home purchases was identified as the main cause of regret among survey respondents. Approximately 58% of participants believed that their homes were overpriced, and a significant number faced difficulties in making mortgage payments.
The survey also brought attention to the escalating home prices, which were amplified by a quick surge in mortgage rates. A majority of recent homebuyers paid above the national average price of $500,000 for their homes.
Low Housing Supply Forcing Some Americans to Overspend
Homebuyers face more than just rising prices and mortgage rates. The limited supply of available housing has intensified competition among those still looking for a home.
According to a report from Realtor.com, the housing inventory across the nation has experienced a slowdown and decline. Home sellers are showing reluctance in listing their properties due to the appeal of current lower mortgage rates. As a result, there is a noticeable decrease in the number of homes available for sale compared to the previous
Supply has decreased in 21 of the largest metro areas compared to the previous year, leading potential buyers to compete for homes, especially those that are more affordable. This trend was noted by Realtor.com.
According to a survey conducted by Clever, around 38% of homebuyers paid more than the asking price in 2023. Among these buyers, 42% were first-time homebuyers. Interestingly, compared to the previous year, the data shows that new buyers were 31% more likely to exceed the asking price, while repeat buyers only showed a 17% increase in doing so. This information was reported by Clever.
Clever also suggests that buyers with more financial resources can use their wealth and experience to negotiate better deals. Conversely, new buyers who usually focus on lower-priced homes may feel financially limited because of increased competition.
Soaring Costs Deterring Prospective Homebuyers
A recent Gallup survey revealed that in 2023, homebuyer sentiment hit an unprecedented low. Only 21% of Americans believed it was a favorable time to buy a house, showing a decline from the 30% registered in 2022.
The survey revealed a notable decrease in the number of Americans who view the current housing market as favorable for purchasing a home. According to the survey, the belief that it is a good time to buy a house has reached an unprecedented low. In fact, over the past two years, Gallup has found that less than half of Americans support buying a home in the current housing market. This pessimistic outlook spans across different demographic groups.
According to Clever, currently, 28% of potential buyers are postponing entering the market in hopes of lower rates and prices. However, those waiting for a shift in market dynamics may be disappointed as conditions might not align with their expectations.