- More than 75 percent of prospective buyers plan to get preapproved before beginning their search
- More than 50 percent of new homeowners spent under six months on their home search
- Three quarters of buyers set a budget before beginning their home search
CHICAGO, ILLINOIS--(Marketwired - Aug. 12, 2015) - Just over half (52 percent) of Americans say they are likely to buy a home in the next five years, according to the 2015 BMO Harris Bank Homebuyers Report. In addition, Americans surveyed are willing to pay an average of $296,000 for a home and will average a 21 percent down payment.
The report, conducted by Pollara, also found that:
- Among likely buyers, 78 percent plan to get preapproved before seriously searching for a home.
- Three quarters of current home owners set a budget before looking for a home. Sixteen percent ended up spending less while 13 percent went over their budget.
- The majority (74 percent) of those looking to buy a new home will consult a real estate agent, while 59 percent said they will visit online real estate websites and 37 percent will seek recommendations from friends and family.
"Getting preapproved helps buyers understand their budget as they start their home search. That means estimating monthly mortgage payments and how much you can borrow," said Alex Dousmanis-Curtis, Group Head, U.S. Retail and Business Banking, BMO Harris Bank. "Talking with one of our mortgage specialists is a great first step for anyone as they start their search for a home. We're here to help."
According to the report, 63 percent of American homeowners spent under six months looking for a new home before they made a purchase. In addition, 8 percent bought their home without participating in an active real estate search - or even any plan to buy at all - because a specific property caught their attention.
The report also found that many likely homebuyers are interested in a real estate mobile app that would help in their home search. Over three quarters (78 percent) of homebuyers said the biggest draw for a mobile app would be the ability to look at house listings in their specific desired area and the ability to obtain information about these neighborhoods (77 percent).
To learn more about home buying and for resources to help consumers in their search, visit: www.bmoharris.com/YourFinancialLife.
The survey results cited in the BMO Harris 2015 Home Buying Report, conducted by Pollara, are compiled from a random sample of 2500 Americans 18 years of age and over between January 23rd and February 9th, 2015. A probability sample of this size would yield results acc urate to ± 1.96 per cent, 19 times out of 20.
About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are subject to bank or credit approval. BMO Harris Bank N.A., Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $633 billion in assets (as of April 30, 2015).