Homebuyer Buzz: Americans Still Want To Buy Their First Home, Believe it’s Getting Harder

Homebuyer Buzz is our monthly round-up of news stories related to the latest in homebuying trends — from the evolving wants of homebuyers to design news and more.   

Americans, particularly first-time buyers, still want to purchase a home, but more believe it will be harder in the coming months than they did at the start of the year. We also look at homebuyer migration trends, the pandemic’s impact on foreign homebuyer interest in the U.S. market and what paint colors are most preferred by buyers.  

Latest homebuyer outlooks show continued desire for homeownership 

The American desire for homeownership is still increasing. The National Association of Home Builders’ latest Housing Trends Report for the second quarter of 2021 found that 17% of American adults are considering a home purchase within the next year. This share has gone up for five consecutive quarters after hitting a low in the first quarter of 2020. Of those prospective homebuyers, 64% are first-time buyers, which is the highest share in the report’s history. The largest share of adults who are planning to buy a home are located in the Northeast, while all other regions saw increases as well. Over half of all prospective homebuyers in each region represent first-time buyers. [Eye On Housing]  

Prospective homebuyers believe it will be harder to find a home. Those same prospective buyers from NAHB’s Housing Trends Report believe it will be harder in the coming months to find the right home. In fact, 64% said they expect it to be harder, which compares to 54% in the fourth quarter of 2020. The expectation that it will be easier to find the right home in the months ahead decreased across all four regions between the first quarter of 2020 and the second quarter of 2021. Additionally, the share of homebuyers who reported only being able to afford less than half the homes in their markets increased to 71%, which is up from 65% in the first quarter of 2021. [NAHB Now] 

The pandemic impacted foreign homebuying. In news that’s not particularly surprising but is now confirmed by the National Association of Realtors, foreign homebuyers purchased fewer homes from April 2020 to March 2021 than the previous 12-month period. NAR found that purchase of existing homes decreased by 27% to $54.4 billion for that time period. While experts believe the drop is COVID-related, it still represents the fourth consecutive annual decline in foreign investment. The median home sales price among foreign buyers was about $352,000, which compares to an approximately $306,000 median sales price for all existing homes sold in the U.S. [HousingWire] 

Japandi style is in, while buyers want blue bathrooms 

The design style “Japandi” is trending. Japandi, an interior design style where Japanese minimalism intersects with Scandinavian functionality, has increased in popularity. The style incorporates natural materials like wood, dried flowers, branches and ceramics with geometric patterns, simple and sculptural silhouettes and living trees. [Dezeen] 

These paint colors add value to a home. Zillow recently found that light blue is the best color to paint a bathroom to see an increase in home value, while white is best for kitchens. The findings are based on a survey of recent and prospective homebuyers in which they asked what paint colors participants would pay more for. They found gray was the best bet for a living room, with the alternatives of light green, white, dark gray and light yellow. According to the survey, pink, bright green and bright yellow should be avoided in pretty much all rooms. Meanwhile, participants liked the idea of dark blue in the bedroom, suggesting it’s the best room to go bold. [Zillow Group]