Survey Says Americans Remain Eager to Buy a Home

With home prices attractive and mortgage rates at all-time lows, we've seen plenty of interest from consumers buying a home. A new report suggests even more homebuyers could enter the market in the months ahead.

Harris Interactive conducted a survey of 2,207 American adults on behalf of real estate website Trulia. The report found that 70 percent of respondents considered buying a home to be part of their personal "American Dream," with 57 percent of current homeowners saying a home was the best investment a person could make, ahead of 401(k) and retirement investing.  

In an interesting shift, the survey also noted that Americans appear to be less interested in large, sprawling suburban homes and are instead being drawn to smaller properties in ideal locations. Only 6 percent of respondents said they wanted to live in a home sized 3,200 square feet or more, while 32 percent said their ideal property was between 1,401 and 2,000 square feet.

"The homes that people will want in the future will look different than today's housing stock," said Jed Kolko, Trulia's chief economist. He noted retiring baby boomers and young millennials alike prefer homes with easy access to restaurants, retail outlets and public transportation.

The centrally located, urban homes more Americans seek often come at a higher price tag, especially in top metropolises like New York City. That could mean more buyers may need jumbo loans to finance these properties.

If you're thinking of moving to a smaller home in this type of location, we suggest building up substantial savings first. It can help your chances to pay more than 20 percent down on a jumbo loan, and if you buy a condominium in a community with a high occupancy rate, you may pay less in interest rates.