Today’s homebuyers more knowledgeable, responsible

October 22nd, 2012

More homebuyers are educating themselves on the process and saving more money for a down payment before submitting a loan application.

A new study shows that the demographic of Americans purchasing homes in today’s economy conduct more research about the market, focus on improving their financial situations before applying for a mortgage and are generally more knowledgeable about the market.

The survey, conducted by Better Homes and Gardens Real Estate, found that 77 percent of Generations X and Y – which make up 103 million potential homeowners – classify themselves as more intelligent about the housing market due to the recession and expanded media coverage. As a result, they are more willing to save money, conduct market research and work with a mortgage consultant to find homes that are both functional and affordable.

“‘The Greatest Generation’ was shaped by the Great Depression and baby boomers were impacted by the oil crises throughout the 1970s,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate. “Gen X and Gen Y experienced their ‘coming of age’ moment during the largest housing market downturn in American history.”

The majority of respondents surveyed also said they are making significant changes to their money management skills and lifestyles to better afford a home in today’s market, such as cutting luxury spending and working a second job to save for a down payment.