Is Price the New Location?

Know how “location, location, location” has always been the number one priority (generally speaking) when it comes to buying a property?

Well, according to a new Coldwell Banker survey, price is now more important for over half the surveyed consumers (56%), leaving location in second place (50%).

Also, according to survey results, women (60%) are more likely than men (48%) to value a home’s price more than its location.

But even with the stronger emphasis on affordability, 31% of consumers who bought a home last year (2023) bought their dream home. And among those planning to sell in the future, nearly two-thirds (66%) plan to relocate to a different city, state, or country.

While many consumers made their dream home purchase last year, the data show that some desire to seek new horizons. For those still looking for their dream home – no matter their price range, whether nearby or afar – I encourage them to contact a real estate agent for local advice and context. The Coldwell Banker brand equips its global network of affiliated agents with tools and technology, including the Move Meter®, where consumers can compare where they live to anywhere else. Jason Waugh - President of Coldwell Banker Affiliates

Read on for the highlights from the survey data, specifically in regard to—

• Consumer sentiment on the housing market
• Social media’s role in home buying decisions
• Ideal home preferences
• Parental contributions to home purchases

CONSUMER SENTIMENT ON THE HOUSING MARKET

More than half the surveyed consumers expect the real estate landscape to either improve or remain the same in 2024 compared to 2023.

And among those planning to sell their home in the future, 39% expect to relocate to a different city, state, or country, compared to 19% who said the same in 2022.

Survey results did not reveal specific reasons for the increased interest in relocating, but given other sources on the subject, housing affordability likely ranked high on the list.

THE INFLUENCE OF SOCIAL MEDIA ON HOME PREFERENCES

More than two in five respondents (43%) say they have been either somewhat influenced or highly influenced by social media when it comes to their preference for a particular type of home. Luxury consumers were even more likely to credit social media’s influence (73%).

Other social insights:

• 64% of consumers aged 18-24 say social media significantly influences their home purchase decisions, compared to only 16% of those aged 55 and up.
• 68% of consumers aged 18-24 say TikTok had the most influence on their home buying decisions, while 54% of those aged 55 and up were most influenced by Facebook.

These numbers show just how important platforms like TikTok, Instagram, and Facebook are to your social media strategy as a real estate agent.

HOME PREFERENCES—STYLE, SIZE, AND REGION

Across the country, surveyed consumers have their own idea of the ideal home design, size, and location.

• Design: 13% say their dream home design is Ranch; the next-strongest style preference (11%) is Modern Contemporary. That said, more respondents (16%) say they prefer “no style in particular.”
• Size: 49% say their dream home is mid-sized, with 3-4 bedrooms and 2-3 bathrooms
• Location: 32% say their ideal home is in the South, and 24% say it’s in the Northeast.

PARENTAL CONTRIBUTIONS TO HOME PURCHASES

More than a quarter of the consumers surveyed (26%) have not assisted financially—and do not plan to assist—with their children's first home purchases.

That said, responses varied significantly across racial and generational groups:

• Respondents aged 25 to 34 are more likely (49%) to consider assisting financially with an adult child’s home purchase, compared to just 23% of those aged 55 and up.
• Black Americans (46%) and Native American or Alaska Natives (49%) are generally more willing than white respondents to financially assist with their children’s first home purchase.

Over half (58%) agree with the statement, “I consider my home as an asset that I would pass along to my child(ren).”

METHODOLOGY

Coldwell Banker collaborated with Census wide to conduct this survey between November 27 and December 11, 2023, with responses from 4,213 U.S. consumers aged 18 and older.

One quarter (25%) of those consumers (1,053) were luxury respondents, classified as those earning at least $1M or who have purchased a U.S. home worth $1M, or who plan to purchase a home valued at $1M in the near future.

Key Details:

A new nationwide Coldwell Banker survey shows price is more important than location to more than half the surveyed consumers who are looking to purchase a home. 

Posted by Sarah Lentz | Mar 13, 2024 | Housing Market

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