Prudential Real Estate Q1 Outlook Survey: Consumer Confidence in Real Estate,
Home Prices Reaches Year-Long High
IRVINE, Calif., April 9, 2013
IRVINE, Calif., April 9, 2013 /PRNewswire/ --Prudential Real Estate, an HSF
Affiliates LLC company, today released results of its first quarter Consumer
Outlook Survey showing that Americans' sentiment toward real estate is growing
increasingly favorable. A full 77% of consumers feel that the real estate
market and property values will recover, representing a four-point improvement
from year-end results and seven-point jump over the same period a year ago.
According to the national survey, home ownership remains important to 96% of
Americans, especially among women and Generations X and Y. Prospective buyers
also said they are motivated by historically low interest rates and attractive
home prices in many markets. In fact, 87% of respondents said Americans should
buy homes while mortgage rates and prices are low.
"Anticipation seems to be building for both buyers and sellers this spring
buying season," said Earl Lee, chief executive officer of HSF Affiliates LLC
and president of Prudential Real Estate. "Consumers are aware that the market
is moving and, with growing optimism, more are weighing their homeownership
More optimism in the housing market adds an additional dimension to the spring
buying season. Beyond other factors, 80% of prospective buyers are looking for
a good value this spring and are open to exploring neighborhoods they hadn't
previously considered to achieve that objective.
The majority of buyers who feel it will be easier to acquire a home this
spring feel that way because the market has improved and "homeowners want to
Prospective home-sellers indicated that "finding the right house to buy first"
and "making a profit" were the primary reasons they would list their homes
Additional key observations include:
o87% of sellers are committed to seeing a sale through if their home
doesn't sell quickly, and 67% are open to additional guidance from their
broker/agent on how to better market their home. 62% are willing to make
repairs or redecorate in order to attract more interest.
oAmong all age groups surveyed, Generations X and Y remain most confident
that real estate and property values will recover.
oConfidence among "contemplators" – those who considered buying or selling
a home within the past year but didn't – jumped a full 12 points from Q2
oContemplators' net favorability of the real estate market increased 10
percentage points over Q2 2012 figures. Primary reasons why contemplators
haven't made a move include "waiting for the right opportunity" and
"haven't found the home I want yet."
o78% of women said homeownership was "very important" vs. 70% of men.
"Our survey data shows that people are feeling better about their personal
situations and the U.S. economy," said Stephen Phillips, chief operating
officer for HSF Affiliates. "At the same time, respondents' views of
residential real estate have grown increasingly favorable. We believe more
consumers will enter the market this year to capitalize on mortgage and
pricing opportunities and to secure their part of the American dream."
The full survey details are available upon request. An infographic
illustrating survey findings is availablehere.
Prudential Real Estate Outlook Survey Methodology
Interviews with 2,500 Americans who are "in the market" to buy or sell a home
were conducted online by Edelman Berland in February, 2013. Respondents are
aged 25-64 with a household income of at least $50,000, and either recently
bought/sold a home or are considering buying/selling a home. The margin of
error is ± 2.0% for all respondents.
About Prudential Real Estate and HSF Affiliates LLC
Prudential Real Estate is a part of the HSF Affiliates LLC real estate
brokerage family, which includes Real Living Real Estate and the new Berkshire
Hathaway HomeServices brand available later in 2013. Prudential Real Estate
franchisees are independently owned and operated.
HSF Affiliates LLC, based in Irvine, Calif., is a joint venture of
HomeServices of America and Brookfield Asset Management.
Prudential, the Prudential logo and the Rock symbol are service marks of
Prudential Financial, Inc. and its related entities and are used under license
with no other affiliation with Prudential.
SOURCE Prudential Real Estate
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