It might not be all low inventory and high prices. It seems Americans have a confidence problem when it comes to the housing market. They’re increasingly apprehensive to move forward, citing concerns over the economy and job security, according to the latest ValueInsured Modern Homebuyer Survey, a measure of confidence in the health of the housing market among more than 1,000 home owners and buyers.
Americans also still express lingering concerns from the housing crisis of 2008, particularly millennials. Sixty-three percent of Americans and 72 percent of millennials say the crash worried them and impacted their decision to either purchase their first home or upgrade to a new one, according to the survey.
Cleve Bellar, chief marketing officer of ValueInsured says that though the results demonstrate “renewed confidence that housing is a smart investment,” he adds that it is “tempered by thoughtful consideration of the undeniable risks, especially given the recent uptick in security and economic events in the U.S. and abroad.”
And confidence could be the key to increasing the low rate of home ownership. Sixty-eight percent of Americans and 81 percent of millennials who say they want to buy a home add that they would do so sooner if they had more confidence in the housing market, the survey found.
The top concerns Americans’ expressed in the survey are:
- Global economy: 59% of Americans and 68% of millennials say that the global economic climate has them worried.
- American economy: 63% of Americans and 70% of millennials say that the current U.S. economy has them concerned about the risks of buying a home.
- National security: 48% of Americans and 61% of millennials say that national security is taking a toll on their home-buying decisions.
- Job security/mobility: 55% of Americans and 71% of millennials say that the possibility of a job change or loss has them concerned.