Photo release — Inflation, rising costs of buying a home
WILMINGTON, Del., March 07, 2022 (GLOBE NEWSWIRE) — Nearly two-thirds (66%) of Americans are struggling to save for a new home or rental due to rising costs for daily necessities, and a equal percentage of renters are struggling to compete and afford homes where they live due to rising rents, according to a new mortgage survey from the WSFS.
The study, which surveyed 1,530 consumers in the Greater Philadelphia and Delaware area and 1,500 consumers nationwide, examines the economic impacts of inflation, rising costs, reduced inventory of housing and geographic preferences of buyers, owners and renters between the ages of 25 and 65.
Financial obstacles abound
Keeping pace with their national counterparts, 64% of Greater Philadelphia and Delaware residents (66% nationally) cite rising costs of daily needs as a major challenge in finding a new home to buy or rent , with six in 10 also citing higher home prices in regional (60%) and national (62%) as a significant barrier. Two in five national and regional respondents (42%) say rising house prices are keeping them from buying.
“Rising inflation to levels we haven’t seen in four decades, coupled with the unprecedented rise in house prices in 2021, has significant impacts on housing affordability for many people,” says Jeffrey M. Ruben, president of WSFS Mortgage. “As we enter the traditional spring home buying season, these challenges are likely to persist, so it is imperative that home buyers and rental seekers are as financially prepared as possible, such as being current and in good health. timely on other debts, paying off credit cards and having a good credit rating and getting pre-approved for a mortgage.
Transparency is king
Transparency is key for homebuyers, as 60% of locals want to know all of their upfront costs, including down payments and closing costs, from their lender. Having their pre-approval in hand to bid competitively is also very important to regional respondents (43%), as is not feeling rushed to decide (50%), even in today’s competitive market.
Help with buying a first home from their bank is also important for young borrowers (71%) in the region, since 41% of 25-34 year olds and 30% of 35-44 year olds want access to programs that help them buy their first home. Renters (52%) also want access to financial assistance, while older residents are less likely to want or need assistance programs.
“Many borrowers have been shut out of the home buying market over the past year, even though they were well qualified, due to multiple offers and soaring prices,” adds Ruben. “This makes controlling all costs crucial to a successful new home purchase. We encourage buyers to start the process early so they’re ready to act when they find a home that suits their needs, and for first-time homebuyers, that also means exploring assistance programs with their bank or government programs that could ease their financial burden. ”
Lifestyle preferences determining decisions
Nearly six in 10 (57%) potential buyers in the Greater Philadelphia and Delaware area prefer to buy in the suburbs, with 42% of national respondents agreeing, with the desire to live somewhere quieter and less busy (54 %) and having more property and space (45%) being the main reasons.
Meanwhile, 40% of regional homebuyers looking to buy in town are doing so for better lifestyle options and 37% are doing so for better job opportunities. Black (25%) and Hispanic (21%) homebuyers are also more likely to buy in major cities or towns compared to all regional respondents (13%).
Staying in place
Homeowners cited many factors for looking for a new home or staying where they are, with four in 10 (44%) in the area saying they are happy with their home while 37% think prices are too high to move . More than half (52%) are not influenced by rising prices when deciding whether to stay where they are or sell. They are also more likely to refinance, with 48% of those happy with their current home having refinanced in the past three years or considering doing so (38%). Minority homeowners in the region are likely to refinance, with 45% of black respondents and 47% of Hispanic respondents either refinancing or planning to refinance in the next three years.
Regionally, the top reason homeowners refinance is to reduce their monthly payment (56%), compared to only 45% nationally. Many area homeowners who have built equity also plan to use it in the future (29%), but only 12% in the next year, which could reflect higher material costs and a tight labor market.
“For homeowners looking to refinance, there are several options available to them, including using their capital for a cash refinance to get money for renovations now or later, or to pay down debt. explains Reuben. “Even if a homeowner hasn’t taken advantage of record rates, they still have time to take action to significantly reduce their monthly payments or obtain additional cash for immediate or future use.”
The study was conducted by the research company Opinium. The sample includes 1,500 national and 1,530 Greater Philadelphia and Delaware area respondents who reside in five southeastern Pennsylvania counties (Bucks, Chester, Delaware, Montgomery, and Philadelphia), four southern New Jersey (Atlantic, Burlington, Camden and Gloucester), and the three counties of Delaware (Kent, Sussex and New Castle). All respondents were between the ages of 25 and 65. The online survey was conducted February 1-14, 2022, with a combined regional and national margin of error of +/- 2.5%.
About Opinium, Inc.
Founded in 2007, Opinium is an award-winning strategic analysis agency founded on the belief that in a world of uncertainty and complexity, success depends on the ability to stay tuned to what people are thinking, feeling and doing. . Creative and curious, the Opinium team is passionate about empowering customers to make the decisions that matter. Opinium works with organizations to define and overcome strategic challenges – helping them learn about the world in which their brands operate. He uses the right approach and methodology to deliver solid insights, strategic advice, and targeted recommendations that drive positive change and results.
About WSFS Financial Company
WSFS Financial Corporation is a multi-billion dollar financial services company. Its main subsidiary, WSFS Bank, is the oldest and largest locally managed bank and trust company, headquartered in Delaware and the Greater Philadelphia area. As of December 31, 2021, WSFS Financial Corporation had $15.8 billion in assets on its balance sheet and $34.6 billion in assets under management and administration. WSFS operates from 112 offices, 89 of which are banking offices, located in Pennsylvania (52), Delaware (42), New Jersey (16), Virginia (1) and Nevada (1) and provides comprehensive financial services including commercial banking, retail banking, cash management and fiduciary and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Cash Connect®Cypress Capital Management, LLC, Christiana Trust Company of Delaware®NewLane Finance®powder mill® Financial Solutions, West Capital Management®WSFS Institutional Services®WSFS Mortgage®and WSFS wealth® Investments. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, visit www.wsfsbank.com.
|Media Contact: Eric Springer|
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