Trulia Survey: 75 Percent of Americans Say It’s Better to Buy a Home Now than Next Year, While Only 32 Percent Agree Now Is a

  Trulia Survey: 75 Percent of Americans Say It’s Better to Buy a Home Now
  than Next Year, While Only 32 Percent Agree Now Is a Better Time to Sell

   Trulia Identifies Top Consumer Real Estate Regrets To Help Today’s House
          Hunters Prepare For This Spring’s Hypercompetitive Market

Business Wire

SAN FRANCISCO -- April 17, 2013

Trulia, Inc. (NYSE: TRLA), a leading online marketplace for home buyers,
sellers, renters, and real estate professionals, today released the results of
its Real Estate Regrets survey. The latest findings reveal the most common
housing mistakes today’s home buyers and renters should avoid during spring
house hunting season. Harris Interactive conducted the online survey on behalf
of Trulia among 2,130 U.S. adults, age 18 and over, between March 22 and 26,
2013.

Eager Buyers Matched with Patient Sellers Fueling Today’s Competitive Market

Buyers feel the pressure of rising home prices this spring: 75 percent of
Americans say it’s better to buy a home now than a year from now. However,
fewer than to 1 in 3 Americans (32 percent) agree it would be better to sell
now than a year from now. Patient sellers, along with little new construction,
fewer foreclosures, and underwater borrowers, have pushed inventory to a
12-year low, creating a seller’s market. This year’s housing season will
likely cause aggressive buyers to scramble in order to try to win tough
bidding wars and overcome stiff competition–putting them at risk of making
real estate mistakes they will regret.

Top Real Estate Regrets: Renting instead of Buying, Small Home Size, and Lack
of Financial Security

More than half of Americans who were involved in the process of choosing their
current home (52 percent) have at least one regret about their current home or
the process of choosing it. A common theme of the top regrets is Americans not
investing enough in their home. Top regrets include choosing a home that’s too
small, renters wishing they had bought instead of renting, homeowners
regretting not remodeling more, and not being financially secure. When
comparing homeowners to renters who were both involved in the process of
choosing their current home, renters are more likely to have housing regrets –
56 percent versus 50 percent. Among different age groups who were involved in
the process of choosing their current home, Millennial homeowners (age 18 to
34) are far more likely to have housing regrets than homeowners age 55 or
older – 75 percent versus 36 percent.

                                             
                                                   % of renters (involved in
#  Top 5 Renter Regrets                        home-choosing process) with
                                                   regrets
1  I wish I had bought instead of rented       42%
2  I wish I had chosen a larger home           39%
3  I wish I had been more financially          27%
    secure before I decided
4  I wish I had more information about the     21%
    home before I decided
5  I wish I had chosen a neighborhood with     18%
    a shorter commute to work
                                              

                                             
                                                   % of owners (involved in
#  Top 5 Homeowner Regrets                     home-choosing process) with
                                                   regrets
1  I wish I had chosen a larger home           34%
2  I wish I had done more remodeling when I    27%
    bought the home than I did
3  I wish I had more information about the     22%
    home before I decided
4  I wish I had put more money down for the    18%
    down payment
5  I wish I had been more financially          16%
    secure before I decided

Note: excludes homeowners and renters not involved in the process of choosing
their current home. Respondents could select as many as apply.

Recent Home Buyers Express Less Regret vs. 2003-2009, but Tide May Change Due
to Low Spring Housing Inventory

As the market improved, housing regrets became less common than they were
during the housing bubble. Among homebuyers who moved into their current home
between 2010 and 2013, fewer had regrets compared to those who moved into
their current home from 2003 to 2009 (55% vs. 63%, respectively). Better home
affordability, lower mortgage rates, and conservative bank lending probably
helped recent buyers avoid major housing regrets in comparison to those who
purchased when prices were higher and lending practices were more lax.
However, the pressure caused by this season’s tight inventory may rush today’s
buyers into real estate decisions they might later regret.


Homeowners With Regrets About Their Home
Year moved into current home    % of homeowners who have regrets
2002 or earlier                 43%
2003-2006                       63%
2007-2009                       63%
2010-2013                       55%

Note: excludes homeowners not involved in the process of choosing their home.

PRE-APPROVED QUOTES

FROM JED KOLKO, CHIEF ECONOMIST

  *“As prices rise in 2013, buyers are impatient while would-be sellers are
    holding back. Faced with limited inventory, many buyers will feel pressure
    to act fast – but snap decisions often end in regrets. Homeowners’ biggest
    regrets are wishing they bought a bigger home and wishing they remodeled
    more. Many buyers would have fewer regrets if they waited until they were
    in strong enough financial shape to afford a house that really meets their
    needs.”
  *“Although the recession, tight credit, and foreclosures have lowered
    homeownership in America, people would still buy – and buy big – if they
    could. Many current renters wish they had bought, but very few current
    homeowners wish they had rented. Furthermore, homeowners are three times
    more likely to wish they had purchased a larger home than a smaller home.
    Even after the housing crisis, Americans’ main housing regrets are that
    they didn’t invest more in their homes.”

FROM MICHAEL CORBETT, TRULIA’S CONSUMER SPOKESPERSON

  *“Real estate is back after five to seven years and the way to approach the
    market has completely changed. New real estate tech tools have
    revolutionized the home buying and renting process, especially in today’s
    market with tight inventory and fluctuating prices. Consumers need to
    utilize online resources such as Trulia.com to stay up to date on national
    and local price trends, as well as find local scoop on neighborhood crime,
    schools, and commutes – all in an effort to help make the best decisions
    in a pressure-filled environment.”
  *“In today’s competitive, low inventory housing market, consumers may find
    themselves giving in to homes they don’t really love. Fully prepping for
    the future will help you lock-in a home type and size that you truly want
    and will feel good investing for. Once you’re ready to hit the market,
    going mobile with Trulia’s real estate and mortgage apps help with getting
    a leg up on the competition by providing newer price reductions, interest
    rates and available home listings all in real time. Arming yourself with
    the best available resources help avoid making mistakes when you’re under
    the pressure to make a move.”

MULTIMEDIA

  *To read the full analysis of the survey result, click here.
  *To download an infographic illustrating the findings above, clickhere.

SURVEY METHODOLOGY

This survey was conducted online within the United States by Harris
Interactive on behalf of Trulia from March 22-26, 2013 among 2,130 adults ages
18 and older, among which 1,370 are homeowners and 706 are renters. This
online survey is not based on a probability sample and therefore no estimate
of theoretical sampling error can be calculated. For complete survey
methodology, including weighting variables, please contact pr@trulia.com.

ABOUT TRULIA, INC.

Trulia (NYSE: TRLA) gives home buyers, sellers, owners, and renters the inside
scoop on properties, places, and real estate professionals. Trulia has unique
info on the areas people want to live that can't be found anywhere else: users
can learn about agents, neighborhoods, schools, crime, commute times, and even
ask the local community questions. Real estate professionals use Trulia to
connect with millions of transaction-ready buyers and sellers each month via
our hyper local advertising services, social recommendations, and top-rated
mobile real estate apps. Trulia is headquartered in downtown San Francisco.
Trulia is a registered trademark of Trulia, Inc.

Contact:

Trulia, Inc.
Vanessa Villatoro, 415-748-3808
vvillatoro@trulia.com
 
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