ServiceLink’s 2022 State of Homebuying Report highlights how low housing inventory and high home prices are leading the next generation of buyers to consider alternative paths to home ownership. the property
PITTSBURGH, April 5, 2022 /PRNewswire/ — While the pandemic is still affecting many sectors of the housing industry and the home buying experience, buyers are adjusting their behaviors and expectations to navigate competitive market conditions. ‘today. A new survey report, released today by ServiceLink, part of the FNF family of companies and the nation’s leading provider of technology-enabled mortgage services, analyzes generational trends among recent homebuyers, their attitudes toward alternative pathways to home ownership and the role that technology plays throughout addressing it.
The ServiceLink State of Homebuying Report (SOHBR) 2022 features information from 1,000 homeowners who have purchased a home in the past five years. This comprehensive report examines changing experiences and approaches to home buying and refinancing, and changing attitudes about the role technology plays in the process.
Key findings of the report include:
Homebuyer demographics are changing: Gen Z and millennials will play a big role in the housing market in 2022
- 32% plan to refinance this year (compared to 23% of Gen Xers and 9% of Baby Boomers)
- 26% are likely to buy a new home this year (compared to 12% of Gen Xers and 6% of Baby Boomers)
- 23% would buy a home without seeing it in person first (compared to 16% of Gen Xers and 5% of Baby Boomers).
- 55% have bought or are ready to buy at auction (compared to 50% of Gen Xers and 23% of Baby Boomers)
Buyer fatigue is real: Complicated market conditions are pushing buyers to put off buying a new home
- Almost a quarter (24%) of recent buyers considered buying a new home in the past five years, but ultimately decided against it
- Almost half (44%) said options were too expensive (compared to 31% in SOHBR 2021)
- 29% said their financial situation had changed (compared to 24% in the SOHBR 2021)
- 28% cited low housing stock (compared to 8% in SOHBR 2021)
Auctions gain momentum: Buyers consider alternative paths to homeownership
- A third of respondents (33%) would consider buying a house at auction while 11% of respondents have already bought a house this way
- Gen Z/Millennials are the most open to buying a property at auction as 55% have purchased one or would be willing to (compared to 50% of Gen Xers and 23% of Baby Boomers)
- Top motivations for buying an auction house: potential savings (72%), faster purchase process (44%), and the ability to bid remotely via app or online (37%)
- Main use of a house purchased at auction: repair and return (31%), primary residence (29%) and rental income (23%). Gen Z/Millennials are most likely to buy at auction to use property as rental income (28%), compared to 19% of Gen Xers and 11% of Baby Boomers.
Technology makes the process easier: Homebuyers continue to see the benefits of technology in improving the home buying experience
- Convenience/ease of use (72%) and time saving (60%) emerge as the top benefits of using technology in the home buying process, regardless of age and sex. This is similar to the SOHBR 2021 results where 68% cited convenience/ease of use and 68% cited time savings
- 83% of baby boomers said convenience/ease of use was the top benefit of using technology (compared to 66% of Gen Z/Millennials and 70% of Gen X)
Rethinking refinancing: the refinancing boom shows signs of slowing down
- Getting a better mortgage rate (62%) was the top reason homeowners refinanced
- A quarter of respondents have refinanced their current home. Among those who refinanced, Gen Z and Millennials led the subset at 35% (compared to 19% of Gen Xers and 16% of Baby Boomers)
- 64% say they are not very or not at all likely to refinance in 2022 (compared to 50% in SOHBR 2021)
“As bidding wars, low inventory and rising interest rates continue to intensify competition, buyers have had to get creative to prevail in this tough real estate market,” said David Steinmetz, President of Origination Services, ServiceLink. “Our research suggests that a growing number of buyers are embracing technology, and many are open to new avenues of home ownership. This indicates there is an opportunity for lenders to provide more targeted resources and advice. buyers throughout their home buying journey.”
Read the full report here.
The ServiceLink Homebuying Status 2022 Report was conducted online from 1,000 recent homebuyers who purchased a home in the past five years, ages 18 and older in the United States. The interview was conducted by Schlesinger Group, a research panel company, between January 7 – January 13, 2022.
About Service Link
ServiceLink is the leading national provider of digital mortgage services for the mortgage and finance industries. ServiceLink leads the way by offering industry-leading technologies, a full suite of services, and a proven track record built on quality, compliance, and service excellence. ServiceLink provides appraisal, title and closing, and flood services to mortgage originators; and default valuation, integrated default title services, vendor billing and claims audit services, and field services and auction services for mortgage services. ServiceLink helps clients in the lending industry and beyond achieve their strategic goals, achieve greater efficiency and better serve their customers. For more information on ServiceLink, please visit svclnk.com.
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