Homebuyers Prioritize Family Relationships As The Housing Market And Homebuyer Sentiment Improved Remarkably in 2012
Current homeowners, potential home buyers, today's renters, baby boomers and families made new lifestyle choices in 2012, showing that home is all about family. We are seeing homeowners placing a greater priority on family relationships and quality time at home as they make home renovation choices. Where to build a home, what type of home to build, and trends in homeowners layout choices point to the fact that economic pressures have only heightened a family focus on home.
The PulteGroup Home Index (PGHI) conducts quarterly surveys comprised of home renters, homeowners, and potential homebuyers across the United States to determine intentions, motivators and deterrents involved in the home buying process, sentiment toward the housing market, and housing trends and preferences. It is interesting to note the family owned construction firms make up the bulk of the US home building industry.
Homebuyer Trends In The Housing Market
2012 saw improving optimism for those thinking about buying or building a new home,.
In 2012 PGHI were carried out four homebuyer surveys and focused on current hot topics from retirement to first‐time homebuyers. 2012 survey results revealed several homebuyer trends, showing an increase in consumer confidence in the economy and the housing market:
61 percent of Baby Boomers still in the work force plan to retire in less than 10 years and are on schedule with retirement plans. 73 percent report being financially prepared to retire in 10 years or less.
61 percent of today's home renters hope to buy a home within the next two years.
Top reasons why renter interest in buying a home is up: They want the American dream of homeownership, calling themselves homeowners (49 percent,) and they plan to build home equity for a good financial investment (44 percent).
Renters are buying homes with more space for family/kids (36 percent) while current homeowners ages 18 – 34 want a larger home for their growing families (68 percent).
National Lumber Costs Are Rising - Partly By Hurricane Sandy Rebuilding Demands
Home Builders never want to run out of wood to match existing lumber and to complete a project on time.
With the goal of recording the pulse on consumer trends and understand what’s important to homebuyers and how they truly live in and enjoy their homes, PGHI's survey work is highly regarded. "Across the board we are seeing more confidence in the market in general. Also, more families are making a deliberate choice to build a better bond among the generations and live closer to family and friends,” said Deborah Wahl Meyer, senior vice president and chief marketing officer of PulteGroup.
“Along with the renewed sense of optimism toward housing among all buyer groups, we are also seeing that family can have a significant influence on the decisions associated with buying a new home.” ~ Deborah Wahl Meyer
Homebuyers Plans For The Next Home
The surveys summarizes the significance of family connectedness across all generations, and key priority changes in family dynamics that often determine homeowner choices in their next new home plans:
The home design choices of 2013 will be shaped by home owners determining how long they will stay in their current homes and what future home buyers’ tastes may be. With an increase in homeowners deciding to renovate, homeowners’ needs and style preferences are more influential in today’s designs than what buyers want.
A Dream Home Is Secondary To Family Relationships -
Homebuyers do not want to sacrifice family when buying a new home. Only 21 percent of homeowners said moving away from their family would be a trade‐off to get their “dream” home.
Home Size Accommodates Additional Family - 84 percent of homeowners plan for their next home to be the same size or larger.
Family Bonding Is Top Priority - Family bonding was cited as the top reason for having adult children move back home (46 percent) and for aging parents (48 percent) to move in.
Mufti-Generational Homes - Twice as many households as today expect to eventually share their home with their adult children or aging parents. 31 percent anticipate at least one adult child moving back home; and 32 percent anticipate an aging parent living with them.
Baby Boomers Want To Stay In The Same State - About 62 percent of Baby Boomers want their home in retirement to be within the same state they currently live. This represents a 20 percent increase compared with two years prior.
Baby Boomers Want To Live Close To Family - 32 percent of Baby Boomers want to live within 20 miles of their children/grandchildren upon retirement.
Home Design Trend Favors A "Homey" Feel
Realtor Magazine's new article titled "13 Top Home Trends for 2013" highlights the new home design trend for a more homey look and feel. The focus is on helping homeowners is to make design decisions based on their hearts and a comfortable affordability level rather than media predictions and trendy hype. "People are putting family first when making plans for their next home renovation project or newly constructed home. They want to enjoy the time their children are at home, build a welcoming place to live, and have a quality home life the family will always want to come back to," says Sprenger.
Zillow Report On Home Values
A report by leading housing market tracker Zillow summarizes that U.S. home values increased 6% in 2012, by $1.35 trillion overall, in their first annual gain in six years. Zillow also predicts that we will see continued growth in home values in 2013, as homebuyers prioritize family relationships and put increased weight on their home life and home investment. "The housing market really turned a corner in 2012, as historic affordability and sustained investor interest helped keep demand at a boil," Zillow Chief Economist Stan Humphries said in his latest report. Minneapolis and St Paul real estate markets are expected to have a home value gain of $14.1 billion for the year 2012 by the close of December. The projected value of for all Minneapolis and St Paul homes for 2012 is $249.8 billion, according to Zillow's report.
Of the 30 largest metro areas, Zillow calculates that only Philadelphia had no 2012 home value gain. Cumulative value rose most in:
Los Angeles - up $122.1 billion
San Francisco - up $93.3 billion
San Jose, Calif. - up $54.7 billion
Phoenix - up $52 billion
Miami-Fort Lauderdale - up $47.5 billion
Minneapolis / St Paul - up $14.1 billion
Contact Destiny Homes to take advantage of today's opportunities to build a home or begin a major home renovation project that will center around family and what it means to enjoy being at home. Call Butch at 952-934-5706 to schedule a time to meet and get answers that help homeowners make well informed decisions.
Download the PulteGroup Home Index Improved Home Buyer Sentiment
Download Zillow's Report on U.S. Homes Gain $1.3 Trillion in Value During 2012
Butch and Liz Sprenger, owners of Destiny Homes Remodeling And Renovation Services Home page: www.destiny-homes.com. Service the entire Twin Cites Metro, from our main office in Deephaven, MN working as home Remodeler and owner of Destiny Homes.