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A shortage of homes for sale and tough competition from other prospects may be prompting more buyers to suffer from remorse post-purchase, according to the latest ValueInsured Modern Homebuyer Survey.
Sixty-two percent of Americans believe people who buy a home now will have remorse about the purchase within a year due to the cost, according to the survey.
“Home payments in some areas are swallowing up 45 percent of local median income,” ValueInsured noted in the survey. In those areas, “expectation of buyer’s remorse is high.”
Homeowners are more likely than non-owners to believe a housing correction will occur within the next one to two years. Sixty-seven percent of homeowners also said that if a person was to buy in their neighborhood, they would be buying high. Homeowners in California and Texas appear to be the most pessimistic about the sustainability of home prices, according to the survey.
While challenges persist for current buyers, many consumers still value homeownership. Seventy-five percent of Americans still say buying a home “is a priority,” despite low inventories and rising home prices, according to the 2018 Home Buyer Report from NerdWallet.